Market Continues Decline

On Monday, the market continued its decline on above average down volume. The Nasdaq fell another -47 points (-1.16%), while the S&P lost -20 points (-1.05%) This was the 2nd day in a row that both indices posted losses in excess of -1%.  Today officially puts the daily Nasdaq in a downtrend, since it has posted two lower highs and two lower lows.

Volume was strong to the downside, as would be expected, with down volume holding a 4 to 1 edge over up volume. Market breadth (advancers - decliners) was negative throughout the day, meaning the bulls were totally absent. NYSE advancers led decliners by a 5 to 2. 

In the last 3 days, the Nasdaq has plummeted -4.6%. The S&P has fared better, losing -2.4% over 3 days, but today it closed just above its 50 EMA; a break below it could bring an acceleration of the decline.