Market Digests Its Losses

On Thursday, the market spent the day in a broad range, digesting the losses from Wednesday's high-volume sell off. What's significant, is that the market did not rebound, and this supports the current assessment that we are in a correction. The Nasdaq has fallen -4.6% since early February. 

The Nasdaq, which had been the strongest performer last year, is now the weakest, as the tech-heavy index is hit with profit-taking on many leading stocks which are now showing uncharacteristic weakness. The Nasdaq fell -0.54% compared to the S&P which lost -0.19%. The Dow slipped only -0.03%. Volume was mixed, higher on the S&P and lower on the Nasdaq. Advancers and Decliners were fairly even on this sideways day.

The S&P closed at 1,849 which was the high in December of 2013; the index is now at risk of going into negative territory for the year. However, the S&P is still above its 50-day EMA. The Dow is also above its 50 EMA. The question now is whether the S&P and Dow will follow the Nasdaq down.