Mid-day today, the Nasdaq sold off – out of the blue and just when everyone was talking about Jeff Bezos of Amazon being the new richest man in the world supplanting Microsoft’s Bill Gates.
Amazon (AMZN) was up 30-some points at the time and finished down for the day, and is now down 55 points for the day in the aftermarket. It’s possible Bezos was the richest man for an hour or so but maybe he still is (someone else, like Forbes, will have to keep track of that).
The reversal ripped through the rest of the Nasdaq 100 (NDX) and the Nasdaq composite. And tore my nifty-50 stock list into 40 stocks on sells. That many sells or more, if not a bottom of a swing, is usually the beginning of a bottom.
In addition, the Dow and the SPX remained up so it is hard to tell the answer to the question in the title above.
Of course, tomorrow will tell.
All three of my end-of-the-day swing trade signals – price, breadth, volatility – are on sells and long-term breadth turned negative but just by a bit.
If the Nasdaq follows through to the downside and takes<the rest of the market with it, the price sell-off threatened over and over again in the internals (breadth and volatility) may finally be at hand.
SWING TRADING SIGNALS:
PRICE: Sell. Price (Day 1).
SHORT-TERM BREADTH: Sell. (Day 2).
VOLATILITY: Sell, (Day 4).
LONG-TERM BREADTH: Sell (Day 1).
CNN MONEY’S FEAR AND GREED INDEX: (73, greed level).
NIFTY-50 STOCK LIST: 10 Buys; 8 Overbought, 14 Oversold, 21 new buys today, 4 new sells.
(click on the chart for a larger view)