Friday will go down as one of the strangest market days I’ve seen in a long time, if not ever. Around mid-day the NASDAQ Composite Index broke hard to the downside as leading stocks got pummeled. At the same time, the NASDAQ advance/decline numbers were still roughly 2 to 1 positive.
Meanwhile, the Dow Jones Industrials and the S&P 500 Index were still up, and the NYSE advance/decline numbers were also about 2 to 1 positive. This was an odd divergence with the NASDAQ busting hard off the peak Friday (after making a new all-time intraday high) on huge selling volume.
While the NASDAQ blew apart, the S&P 500 Index churned around wildly before closing only -0.08% to the downside on higher trading volume. At one point, it looked like the NYSE-based indexes were about the blow apart as the S&P 500 and the Dow both turned sharply lower just before the final hour of trade on Friday.
But as things got almost ridiculously oversold among the NASDAQ-based tech names, including all the big-stock NASDAQ leaders, the stage was set for an intraday bounce. This carried into the close, and the S&P 500 closed roughly flat while the Dow managed to close up 89.44 points, or 0.42%.
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