Week Starts Off Negatively for Stock Market
The stock market indices started the week off negatively, with large gaps to the downside, followed by steady declines in channels by midmorning.
They reached their morning lows, rallied back in what looked like rising wedges, but when they failed to get through resistance, rolled over to make lower lows, only slightly so. The Nasdaq 100 got down below 3890 and the S&P 500 (NYSEARCA:SPY) below 1830. Midafternoon they appeared very oversold intraday and tired of going down, and staged a very big rally, taking the Nasdaq 100 from 3890 to 3980, 90 points. The S&P 500 jumped from 1828 to 1861, 33 points, but in the last 10 minutes, they backed off to pare back the gains. The rallies were about .618 Fibonacci retracements. The late pullback to test support did hold, but they firmed up a little bit in the last few minutes to close down on the day, but net/net, they cut their losses in half, which were nearly 400 points on the Dow(NYSEARCA:DIA).