Market Correction Resumes

Last week, the market gave investors a roller coaster ride, rising at the beginning of the week and falling at the end of the week. The beginning of the week saw new all time highs in the S&P and Dow. The Nasdaq, which had fallen to its 100 day moving average, rebounded on strong volume, closing above its 50 EMA. The correction was over.

However, on Thursday, the three major market indices closed down, and Friday things fell apart. On Friday, the market tanked in a broad sell off. Over 400 stocks in the S&P 500 were losers, and 94 stocks in the Nasdaq 100 also declined. NYSE down volume was higher than Thursday's down volume, an indication of increased institutional selling. Moreover, volume was 20% above average NYSE volume.

The Nasdaq was the biggest loser Friday, dropping a whopping -149 points off its morning highs! That's a number which wouldn't be unusual for the Dow, but not the Naz. The Nasdaq decliners held a 9 to 2 edge over advancers, and Nasdaq down volume led up volume by a 7 to 1 ratio. 

The S&P and Dow were not as hard hit as the Nasdaq, so the week had mixed results. For the week, the S&P 500 gained +0.40%. The Dow managed to rise +0.55%. The Nasdaq lost -0.67%. 

There were some economic numbers released on Friday. There were 192K jobs created in March, slightly below expectations, and the unemployment rate remained at 6.7%. But it is doubtful these numbers alone could have spurred the sell off.