The market’s wild and woolly action did not let up all week long. The NASDAQ Composite and S&P 500 Indexes both regained their 50-dmas on Thursday as they got right back to where they started the week. The three-day rally was greeted on Friday with a gap-down open, and the market went into the spin-cycle from there.
The indexes rallied off their gap-down lows and turned positive within the first 90 minutes. For a while, the upside reversal in the face of an opening gap-down looked quite bullish. But as is so often the case in this market, things are not always how they appear.
The rally faded, and the indexes steadily deteriorated from there, with the Dow closing down -0.38%, the S&P 500 -0.58%, and the NASDAQ Composite taking the brunt of the selling with a decline of -1.04%, all on higher volume. In the end, a three-day rally results in a higher-volume reversal at the 50-day in both the NASDAQ and the S&P 500.
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