Market Breaks Win Streak

On Tuesday, the market opened with weak breadth and declined throughout the day. Today's decline broke the short streak of 2 up days in row and erased all of Monday's gains (S&P). Poor earnings reports by some high profile retailers likely contributed to today's bearish mood. Dick's Sporting Goods (DKS) did a cliff dive, plummeting -17%, and  Staples (SPLS) fell -12%.

The Nasdaq lost -28 points (-0.70%), the S&P 500 fell -12 points (-0.65%), and the Dow dropped -137 points (-0.83%). Today's decline was on higher volume, meaning institutional investors were active sellers today. Declining stocks led advancing stocks by a 7-to-3 ratio, and down volume beat up volume by a strong 5-to-1 ratio. 

The S&P is still above its 50 EMA and hasn't fallen below it. The Nasdaq is still "below" its 50 EMA and hasn't gotten above it. Something has to give, and it will. This is a time when the market seemingly does nothing for so long that it lulls the trader to sleep. The Pro remains vigilant, knowing that eventually things will break, and the opportunities will be there to profit.