The Gilmo Report

March 14, 2018

March 14, 2018

After rallying for seven-straight days, the NASDAQ Composite Index reversed sharply yesterday on higher volume. Given that this was the epicenter of upside leadership as big-stock NASDAQ names rocketed over the past several days, the pullback is perhaps not surprising. The sell-off was blamed on more tariff talk, this time targeting China, and the sudden firing of Secretary of State Rex Tillerson.

Whatever the “reasons” for the sell-off, we might simply consider that the market and leading stocks were already extended coming into the week, and a pullback wasn’t unexpected. Yesterday’s action in the Composite resulted in a big outside reversal to the downside on higher volume, which looks near-term bearish, but today the index held up much better than its NYSE-based brethren.

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