Investors were finally provided a reminder of what a decent sell-off is like as leaders across the board were raked with heavy selling volume on Friday. NYSE breadth was about as ugly as it gets with decliners leading advancers by a whopping 2747 to 304. The volatile intraday action we saw earlier in the week looked cautionary, as I noted in Wednesday’s report, and we saw that funky action come to fruition in the form of a full-blown sell-off on Friday.
The sell-off doubled the “one-percenter” we saw on Wednesday as the S&P 500 Index slumped -2.12%, blowing through its 20-dema on higher selling volume. The Dow Jones Industrials, not shown, came off -2.54%, which isn’t necessarily a brutal sell-off, but the optics were hard on the eyes as that added up to -665.75 Dow points. The chart of the S&P, below, nevertheless reveals a sharp sell-off within the context of an orderly prior uptrend, no matter how you slice it.
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