All 11 sectors lower again today.
For the 2nd day in the row, we have to give thanks to the closing bell for putting an end to the pain for the longs.
The ending numbers are not good:
- The S&P is closing down -57.30 points or -2.06% at 2728.37. The index is closing below its 200 day MA for only the 2nd time in 2018 (and only the 3rd time since March 2016). That MA comes in at 2765. On the corrective move off the low, the price stalled just ahead of that 200 day MA level (see red line in the chart below). Bearish.
- The Nasdaq is closing down -92.987 points or -1.25% at 7329.06. Yesterday, the price closed below the 200 day MA for the first time since 2016. Today, the corrective rally off the lower CPI, stalled just below that 200 day MA at 7500. The high today reached 7493.207. Bearish.
- The Dow fell -545.91 points and is also closing below its 200 day MA at 25426.74. The closing price is 25052.83, down -2.13%. Like the S&P, there was a corrective move higher off the low, that stalled just ahead of its 200 day MA at 25426.74. Bearish.
All three major indices are below their 200 day MA and all three tested the 200 day MA on corrective moves and found sellers. That is bearish. If the market is to recover, getting and staying above those 200 day MAs will need to be taken back. If not, sellers still remain in control.
