The major market indexes spent the week selling off. A steady slide for four-straight days was capped off on Friday with a weak 20,000 jobs number and overnight news of plunging Chinese exports. The Chinese markets were also roiled by news that the U.S. and China are still far from a trade agreement.
This sent the S&P 500, the NASDAQ Composite Index, and the small-cap Russell 2000 Indexes further below their 200-dmas, all of which had already been breached earlier in the week. But Friday’s gap-down open turned out to be of the exhaustion type after four prior days to the downside.
The Dow Jones Industrials, which remains the only major market index that is still above its 200-dma, pulled in to test the line but never quite got there, rallying off the lows as volume declined. Friday’s action had the feel of a low-volume shakeout on the fifth day of a sell-off from the recent highs.
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