Very Nasty Day on Wall Street
The stock market indices had a very rough session. Futures were up before the opening, and the indices did firm a few minutes into the opening, but then rolled over and were down steadily and sharply all session in 45-degree-angle, declining channels. At the end of the day, the indices rolled over after a late-afternoon rally attempt and consolidation failed. They then rolled over hard, especially the S&P 500, into the close, which dropped 5 points in the last 5 minutes.
Net on the day, the Dow was down 121.41 at 12,811.32. The S&P 500 was down 17.02 at 1377.51, at the exact low for the day and 24 points off its high. The Nasdaq 100 closed down 40.12 to 2572.57, just a few cents off its low.
It was another nasty day on Wall Street, following up with yesterday’s post-election decline.
Advance-declines were 22 to 8 negative on the New YorkStock Exchange, and 3 to 1 negative on Nasdaq. Up/down volume was 5 to 1 negative on New York, with total volume of 745 million shares. Nasdaq traded over 1.4 billion and had a 7 to 2 negative volume ratio
Stepping back and reviewing the hourly chart patterns, the indices were up for a brief period in the morning, rolled over in a beautiful, parallel, down channel all session on both indices, only to be interrupted a couple times by rally attempts, which failed at declining moving averages and overhead resistance. Simply, we’ve come down hard and fast and is now on the Nasdaq 100 near the bottom of a major declining channel and getting oversold.
I’m not sure if we’re oversold yet, but another day or two of this, and we’ll be out of power. Expect some kind of rally. We are at a cycle low at this point, projected to be Nov 9, which is tomorrow.
We’ll see how it goes.