The Gilmo Report

September 13, 2020

September 12, 2020 7:56 pm ET

The major market indexes have remained in short bear flags following the record-breaking 10% correction in three days that ended on Tuesday. The NASDAQ Composite Index illustrates this as it bounces along its 50-dma, closing below the line on Friday as volume declined. The S&P 500 Index, not shown, held support at its 50-day moving average on lighter volume.

 

 

If we check in with the S&P Five, which also comprise a hefty weighting in the NASDAQ 100, we can see that the NASDAQ’s bear flag and move lower on Friday coincides with bear flags in each of these names.

The S&P Five, Apple (AAPL), Amazon.com (AMZN), Facebook (FB), Alphabet (GOOG) and Microsoft (MSFT) all spent the middle of the week tracking and bouncing sideways. As part of the very short flag-building process, however, all five rallied up into their 20-day exponential moving averages on Thursday before pushing lower on Friday.

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