The market remains a highly volatile beast that is difficult, if not downright treacherous, to navigate. Both the S&P 500 and NASDAQ Composite Indexes cleared their 50-dmas on Thursday, something I noted as a possibility in my weekend report after Wednesday’s short-term climactic low. Both the S&P and the NASDAQ were unable to hold their 50-dmas on Friday, however, as both closed back below the line on lighter volume.
The indexes literally sit on the 50-dma fence here as we wait to see how these resolve from here. So far, both the S&P and the NASDAQ have retraced about half of their prior downside moves, so are technically in a position to reverse back to the downside. Barring that, a melt-up back to the prior highs remains a possibility given the nature of this bizarre market.
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