Broken Market

The market’s been range bound for the past two months… until today. This drop is significant.  When the SPX lost 1260, it never looked back.  The bad news for the bulls, is the 92% down volume for the Nasdaq.  This was a clear distribution day, where all sectors were hit.  1200 SPX looks inevitable.

A look at the Nasdaq monthly chart shows the end of an uptrend.  It does not indicate a downtrend long term.  It just shows the market as losing that uptrend.  That’s an important distinction to make.

There will be plenty of rallies in this bear market, but until the SPX regains 1260 with some force… beware.

I’m also expecting quite a bit of volatility.  The market was caught in such a tight range through July and August, it’s got plenty of pent up energy to use now.  You saw some of that today.

Sector note:  Solar stocks look in trouble.  Watching for that oil stock bounce soon.