The market split wide open on Thursday, sending the NASDAQ Composite Index gapping below its 50-dma. This came on the heels of Monday’s bearish breakout failure and now puts the index in limbo below its 50-dma. As I have discussed in recent reports, the Trump Tariff Rampage had the potential to create near-term chaos in the markets, and it is chaos that ruled the market action this past week.
The NASDAQ broke below its March 2nd low Friday, with the next reference low being the early February low that marked the end of the prior rapid correction seen at the outset of that month. The 200-dma, however, lies between here and there, so a move down to the 200-dma that finds support at the line is possible. The bottom line is that the action here is ugly and so far, no concrete low has been set as the indexes appear to be in free fall.
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