The Gilmo Report

May 17, 2017

May 17, 2017

Things became quite extended to the upside going into yesterday’s close as many of our favored long names have been jacking higher. But as is often the case in this market, just when things look about as good as they can get the market likes to pull the rug out on investors.

That’s what happened this morning as the indexes gapped down at the open and just kept moving lower all day, save for a couple of brief churning periods.  In the process, the NASDAQ Composite Index finally closed, no, make that “blew,” below its 10-day moving average on heavy selling volume.

The selling today struck me as forced selling or abnormal liquidation (choose one, or both) as money rushed for the exits. Leading stocks of all stripes and colors were summarily and indiscriminately shot.



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