Yesterday, stocks popped higher a logged in the best day in weeks.  Today, in was a complete reversal, and more!  Stocks fell from the opening, and just kept falling.  There may be a million seemingly logical reasons that people may use to try to explain today.  But, this isn't unusual, given where the charts were at.  We'll take a look in a minute.

Major sectors were weak across the board:  financials, internets, metals, energies, you name it!  Just the day before, biotechs were shooting higher.  Many of them reversed yesterday's gains today.  AGN, VRX, VRTX still stayed strong.  For the high-flying internet stocks, GOOG fell almost $13, PCLN dropped $18, NFLX lost $7.  GPRO, bucked the trend, and made yet another new all-time high, at $81.64!

The Dow was down 264.26 points; SPX fell 32.31 points; Nasdaq tumbeld 88.47 points!  We took profits on our VIX calls.  Let's take a look at the charts:

SPX

SPX fell 32.31 points to close at 1965.99.  Its daily MAs and MACD moved lower.

Nasdaq

Nasdaq tumbled 88.47 points to close at 4466.75.  Its daily MAs and MACD also turned lower.

In the SPX chart above, you can see that just within the last 6 months, we saw 3 instances of such sharp drops.  Once in April, another one in August, and the one today!  We always have to be extra careful when the daily MAs start to bunch together after an extended run-up.

Now looking at the charts, SPX has support at between 1960-1950, while Nasdaq has support at 4450.  Being Friday tomorrow, we'll likely see another volatile day.  Please make sure you keep lots of cash!

Good night and HappyTrading! ™