Heading into Friday the S&P 500 and Dow Indexes had posted their biggest three-day move since 1982. The move began on Tuesday, Election Day, and then posted the biggest post-Election Day rally in 120 years on Wednesday, and just kept going on Thursday, on three gap-up opens in a row.
Some fatigue set in as the NASDAQ Composite Index sold off early in the day on Friday but closed tight on heavy volume. The long lower tail on the price bar gives the impression of supporting action off the intraday lows. Had the index held in a tighter range or closed mid-range the action would have had more of a churning feel but objectively what we have is a pause after a blistering move off the Monday lows.
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