Friday, May 12, 2006

Market Closes At Its Lows

So much for a potential bounce. The market basically closed at its lows for the day. This could result in additional weakness at the open on Monday.

The SPX fell -1.1% today, the COMP was -1.3%, and the RUT was -2.0%. Energy and material stocks were down the most.

Breadth was very negative, and it won't take much more selling to move the markets into oversold territory. The Hi/Lo index went negative on both exchanges, and this marks the first time the number of new lows exceeded new highs on the Nazz all year.

Volume rose on the NYSE, making for a 2nd straight distribution day, but it did not rise on the Nasdaq.

In all, this turned out to be a pretty ugly week, with the market merely hovering near its highs before the FOMC meeting, and then getting the rug pulled out from under it thereafter. The NDX is actually down for the year after today. TGIF--


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