Monday was supposed to be a quiet, short, pre-holiday session for the market, but investors were instead treated to an unexpectedly unusual and unique fireworks show. The 3½ hour trading session started out with a big upside gap thanks to a sizable overnight move in the futures that gained momentum in pre-market trade leading right into the opening bell.
For this market, it was just another manic Monday. But the upside fireworks show, at least as it related to the NASDAQ Composite Index. soon gave way to a downside fireworks show as the index gave up a 37 point gain and reversed sharply. By the time the dust had settled, the index ended the day down -30.36 points, or -0.49%. Volume, adjusted and normalized for the short trading day, came in at 6.44% above Friday’s levels, resulting in another distribution day for the index.
Big-stock NASDAQ names, which all opened to the upside on Monday, also reversed course, with some, like Nvidia (NVDA), selling off hard. Several other big-stock NASDAQ names also broke critical support at the 50-day moving averages, including Amazon.com (AMZN), Facebook (FB), and Microsoft (MSFT). Others, like Netflix (NFLX) and Google (GOOGL), moved further below their 50-day lines. On an individual stock basis, Monday was an ugly day for these previously leading “FANG” names.
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