Summary
Thursday was an ugly day for the major stock indices, the first since August 7. The S&P 500 (SPX) gave back 0.9% and the S&P 100 fell 1%, while the Nasdaq and Nasdaq 100 (QQQ) took the brunt of the selling, dropping 1.7%. Smaller stocks held up better, with the S&P 400 off 0.8% and the S&P 600 down 0.9%. The NYSE fell only 0.4% and NYSE breadth wasn’t bad at -1,370. NYSE advancers/total issues and NYSE up volume/total volume weren’t terrible at about 28%. Real Estate was up 0.5%, with Financials rising 0.4% (led by life insurance and property & casualty stocks). Mega-cap JPM propelled the banks. On the downside, Information Technology fell 2.4%, led by weakness in semiconductors as the SOXX ran out of gas at its 50-day average. Software was weak and also failed at its 50-day. Consumer Discretionary fell 1.8%, dragged down by TSLA. If we do see downside price action, the first cluster of support for the SPX is near 5,500 — the location of the rising 13- and 21-day exponential averages, the 50-day simple average, and a minor 23.6% retracement of the recent rally. There is an open gap at 5,463, while a 38.2% give-back targets 5,443 and a 50% retracement is at 5,382. For the QQQ, a
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