Stock Market Pullback Is Healthier Than It Looks

Summary

• The S&P 500 finished the week at 7,306, down 2.4% from the prior Friday, while the Nasdaq 100 dropped a hard 4.6% as the megacap technology names that have carried this market all year finally took a real hit.
• The Dow gained 0.4%, the Russell 2000 added 1.4%, and the equal-weight S&P 500 still closed green on the week. The index fell, but the market underneath it did not.
• The MACD has rolled over below its signal line with the histogram widening to the downside, so the short-term trend points lower.
• A 2.4% drop in the headline index and a 4.6% slide in the Nasdaq 100 make for ugly weekend headlines.