Market Showing Weakness at New Highs

On Thursday, the market fell in the morning session, and then it bounced in the late afternoon to close in the midrange for the day. Volume was lower today, so the selling was not heavy, but the weakness was a reminder that this bull market may be losing steam. Decliners beat advancers by a 2.5 to 1 ratio. Down volume led up volume by a 1.4 to 1 ratio. 

After gaining +40 points yesterday, the Nasdaq gave back -38 points today, closing down -0.91%. This sent the Naz back to its 50 EMA for a test of support (it held). The S&P, which made a new all time high yesterday, retreated today and could not extend its gains; it lost -2 points (-0.11%). The Dow hit a new all time high today, but closed back inside yesterday's range, essentially closing flat.

Losing sectors included Biotech, Solar, Internet, and Software. The Oil & Gas sector was a winner today.

Despite the correction ending yesterday, this does not have the feel of a strong bull market. There are too many stocks that are losing strong institutional support, making them prone to losing days. 

Tomorrow's Economic Reports: Nonfarm payrolls and Unemployment Rate