Volatile session. Started lower but rallied from the open, something seen more than once this week. Hit a high midmorning, faded some of the move, but then in the last hour selling as trade news hit. The story is there is no talking right now, not surprising given China's comments about the US' treatment of Huawei, i.e. recognizing the company as an IP theft company.
The action leaves the indices sporting modest to significant losses, with the small and midcaps leading the way.
SP500 -15.12, -0.53%
NASDAQ -73.34, -0.94%
DJ30 -89.46, -0.34%
NASD 100 -0.97%
SP500, NASDAQ, NASDAQ 100 showing tombston doji just below the 50 day SMA. that suggests the Tuesday to midmorning Friday bounce is a threat to roll back over.
SOX did not wait, gapping lower and failing a recovery attempt. It is now at a lower low for this selling. As the chips go . . .
DJ30 tapped at the 50 day and faded as well.
SP400 gapped lower to the 200 day MA, rebounded back to the Thursday close, but then rolled over. It looks as if it will close below the 200 day.
RUTX very similar.
Good Michigan Sentiment, but trade is still weighing on the market, and the patterns suggest more downside early next week.
Thus, we are looking at opening some downside positions on AAPL and CMI before the close.
Jon Johnson, Chief Market Strategist
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