Market Slips for 3rd Consecutive Day

On Thursday, the market declined for the 3rd consecutive day. The morning started out with weakness that lasted until noon, and then the market attempted to rebound in the afternoon. In the last 30 minutes of the day, the market weakened again, erasing most of the afternoon bounce. This price action generally means that many shorts covered, but the buyers did not step in to support price.

The S&P closed down -6 points (-0.38%); the Nasdaq was stronger today, losing only -5 points (-0.14%). However, the Nasdaq slipped below the 4,000 level and closed at 3,993. The Dow fell -104 points (-0.66%) and was the weakest index today. 

Volume was lighter today than Wednesday, so the selling is decreasing in intensity as all three major indices are now at or near their daily 50 EMAs. Down volume beat up volume by a 1.5 to 1 ratio, but this is a big improvement from the 5 to 1 ratio registered on Wednesday.