One thing continues to remain clear and it is the lack of interest traders have in supporting the NASDAQ. The index closed below Friday’s low and while volume for the composite index was lower price says it all. After Monday’s rally stocks have stumbled lower heading into Friday’s job number. This is the first real corrective action the market has taken since hitting a low back in February. Strength remains with names in the Dow Jones Industrial average and the S&P 500. If we are to bounce look for names in the Dow and S&P 500 to lead us higher. Sure, the NASDAQ could rally. However, the likelihood we will have explosive gains is very low. Caution is warranted and stops must be obeyed.
This will have to be a short commentary tonight. The cracks in this market continue to grow, but given the Dow and S&P 500 remain above their 50 day and 200 day moving averages we still are okay. Unfortunately for the NASDAQ things look very troubling. Be relentless with your risk management process. Do not waiver.
More to come tomorrow. Stay focused and disciplined.
