Volume rose across the board.
The sizable losses combined with rising volume slapped the Nasdaq and the S&P 500 with new distribution days.
Yet, the strong finishes lessened some of the negative conviction because there clearly was buying after the bad start.
A distribution day points to institutional selling. The Nasdaq and the S&P 500 now carry six each, which means the indexes will be walking a tightrope.
Already, the market is in a compromised position, and many leading stocks have come under fire. Investors should be on high alert, looking to raise cash rather than buy shares.
These kinds of losses among top-rated stocks do not bode well for the market. Still, the market is showing some rotation. For example, the restaurant industry group has risen seven weeks in a row.
Economic news Friday offered little to reassure the bulls.
Payrolls rose much less than the Street expected. Meanwhile, the jobless rate fell from 7.7% to 7.6%, but that was largely because the labor force declined by 496,000.
For the week, the IBD 50 dropped 4%, the Nasdaq 1.9% and the S&P 500 1%. The outlier was the Dow Jones utility average, which rose 0.7% and notched its seventh straight weekly gain.
First-quarter earnings season begins this week and could add firepower to the bulls or the bears, depending on how results fare.
way to go democrats the labor force dropped by another 496,000 folks while only 88,000 jonbs were created. lowest participation rate since 1979 under you guessed it a democrat Jimmy Carter the worst US president ever before Obama became the worst.
With these rising oil inventories, safety, and risk off is the theme. My 30% invested now is VIG, XOM,CVX, WMT,ABT, SLW, and AAPL. I am a trader in my Ira account... but currently 70% in VTIP. I love America! If not for Mr. Bernanke, I would be 100% in cash.
ibdman, for once I think you may be right. Not about Obama being the worst president (as George Bushy Jr. holds that title) but about a major correction in place. Too bad you have been bearish all the way up but you should get at least 8% of your losses back in the next couple of weeks.
The largest tracking ETF of the Russell 2000 index dropped 2.85% for the week and ended at 91.73 slightly below below its 50 day moving average (91.83), a very bearish sign. It also closed beneath this key MA for two out of the past three days and on the highest weekly volume since 1-4-13 The upward sloping trendline also breached in both the daily and weekly charts. It appears the small, mid caps and transports will lead the entire market much lower and the prudent investor will par back their equity holdings before their gains evaporate or a small loss turns into a big loss.
Sentiment: Strong Sell