without a doubt, it was an ugly day for the market, but most concerning is the break below the intermediate ascending trendlines for the major indices (for those that believe). it'll be interesting to see how the market does the rest of the month.
by the close, the indices each lost just under 2% on breadth that was worse than 2:1 to the negative with particular weakness in materials, financials, tech and consumer discretionary. we’ll see what level of dip buying interest there is, but with yet another technical breakdown, it is very possible that investors will be more inclined to sell into strength (again, for those that believe).
the bottom line is that the “worst is over” crowd is going to be put to the test here, and as a result, going very defensive until we see what kind of support they provide may be prudent.
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