Stocks moved into negative territory for the week as the S&P (-0.9%) tumbled below its 50-day simple moving average (2,414) for the first time in seven weeks. The Nasdaq (-1.0%) and the Dow (-0.7%) also registered sizable declines, but none as great as the small-cap Russell 2000, which settled lower by 1.4%.
Things look queazy at best out there right now and even the financials were red on a day when rates rallied.
Energy continues to be garbage. Oil was up most of the day but it got crushed at about 1 PM to give back most of the days gains. I wouldn't be surprised if we saw oil and energy crack lower. Stocks in the XLE look a lot lower. An example would be REN. It's trading around 29 but looks like it wants 22.
Biotech was off almost 2%, but its still holding that bull flag on the daily chart, so its fine for now. This bio pullback/consolidation is going on two weeks now which I like to see. Ths means more names are starting to set up again. Stay tuned.
Retail continues to trade horribly as some earnings pre-announcements start to roll in. See LB today for example.
See you in the morning.