For the week, the Dow and Nasdaq Composite dropped over 3%, the S&P 500 lost nearly 5%. That equates to a loss of just over 300 points for the DJIA and erases the bulk of the 360 points gained last week. The loss for the week also means the S&P 500 didn't overtake its 40-week moving average.
So, we head into next week with the SPX retreating from resistance while the NASDAQ remains perched above support. That dynamic can not persist indefinitely so the question becomes who blinks first, the NASDAQ bulls or the SPX bears?
As we watch that play out, I will also be keeping an eye on the extended intraday chart of the DJIA shown below. The average remains stuck in the limbo as described recently but it is now within a chip shot of testing support. The early action next week could be telling. And that is where I will pick up on Monday.
Have a great weekend!
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