Things got a little crazy over the past two days as the market once again acted like a cheap drunk on Thursday morning, gapping up sharply as it completely forgot about Wednesday’s ugly, bearish sell-off to lower lows. That move looked quite strong, with the NASDAQ 100 Index up 3.35% on higher volume, despite fading a bit into the close.
That set the stage for an after-hours futures reversal to the downside that ripped the Thursday rally to shreds, resulting in a sharp gap-down open on Friday. The alibi for all this was the disappointing earnings and guidance from Amazon.com (AMZN) and Alphabet (GOOG) which sent those stocks gapping sharply lower.
AMZN gapped below its 200-dma, dragging the NASDAQ 100 futures down with it, in after-hours trade on Thursday following the report. After a brief poking of its head back above the 200-dma it ended the day on Friday back below the 200-dma. The stock hasn’t traded below its 200-dma since February of 2016, back when it was at the lowly price of $570 a share. Now that’s a spicy meatball!
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