It has been a rough few months for the bear camp, but today’s price action was a swing in their favor. What is most concerning about Thursday’s price action is that it’s giving further confirmation that a short or even long-term top may be in place.
After punching over 4200, which is in the area of last September and December’s high, resistance has been steadily going down. Meanwhile the support at the 4100 area appears to be waning.
Also, when the index turns a 40-point gain into over a 50-point loss, there are both short and long term traders and investors getting caught up in the potential turn in the markets.
Mega cap tech was once again a big drag on the index as investors cannot sell Alphabet Inc. (NASDAQ: GOOG or GOOG) out of their portfolio fast enough.
For the session, the index declined by 38.75 handles, closing at 4091.75.
One technology stock survived today’s decline and was the biggest gainer of the top components of the index, Nvidia Corp (NASDAQ: NVDA). For the session, the issue gained $1.32 or 0.60% to close at $223.47.
That was over one percent better than the cash index’s decline of 0.94%.
For the second day in a row, Alphabet Inc. (NASDAQ: GOOG or GOOGL) was the biggest loser among the top components of the index. For the session, the issue declined by $4.54 or 4.54% to close at $95.46.
