Courtesy of Declan.
Friday’s GDP data didn’t rock the boat too much, and by the close losses were light and inline with profit taking.
The only warning sign was a ‘sell’ trigger in the Nasdaq Percentage of Stocks Above the 50-day MA. Unusual in that the Nasdaq has been the high flyer of the indices in recent weeks. Breadth metrics for the Nasdaq need to be watched closely should such weakness expand.
Friday’s reversal in the Nasdaq also occurred at the 10% moving average envelope to the 200-day MA. A similar occurrence in November marked a high of an eventual 2 1/2 month consolidation, and was followed by a period of weakness which lasted a couple of weeks
The S&P lost a handful of points, but not enough to hurt it.
The Russell 2000 also enjoyed a healthy sell off. Not enough to damage the rally, but enough to shake some weak hands. Plenty of support available below should selling pick up.
Hopefully, tomorrow will be more exciting.
