The S&P was -0.87%, the NASDAQ -2.47% and the Russell -1.95% Thursday. All of the NASDAQ’s Wednesday post-Fed gains and more were erased. Apple (AAPL) – the market’s leading stock – was -3.93%. QQQ got hit hard but once again found support at its 50 DMA. Bears will have to crack that to break the market.
I have been pointing out for months the carnage beneath the surface as the “soldiers” got taken out one by one. However, that weakness has been masked by the “generals” – leading stocks like AAPL – whose size has masked the underlying weakness in the market cap weighted indexes. Thursday bears started to get to the generals. If that continues, the market will rollover. While I expect that to happen, my guess is it’s a 2022 story.