Another Wild One

The stock market endured a volatile session on Tuesday with investors keeping one eye on the oil market and one on the dollar/ruble exchange rate. The Russell 2000 (-0.1%) registered the slimmest decline while the S&P 500 settled lower by 0.9% after failing to hold its 100-day (1988) and 50-day moving averages (2001).

The market had a very bullish move starting at about 10.30 that lasted until about 11:30.  At that point the market rolled over hard for the rest of the day with all of the major averages closing on the lows.

The way in which we rolled over was quite bearish, but as we know know already, this market has been quite volatile evidenced by big intraday moves. Tomorrow we could be up 200 points.

Many stocks are getting hammered here. NFLX, TSLA, CAT, NAV, AMZN, GOOG and many others.

 We saw similar action yesterday, market opened strong , but then it got sold. This means sellers want out and are taking advantage of rips to take profits and get liquid.  This may be a temporary event as the moves in oil have everyone looking over their shoulders. Its been a “shoot first ask questions later” market.
This was extremely evident in October when we sold off 10%. The dust settled and we ripped higher and made more highs.
Below is a 10 minute chart of the last 2 days.
Biotech, which has been a strong leader of late, finally had a reality check. The IBB is down 21 points in the last 3 days.  IBB closed today at the 296 area and the 50 day is just below at the 290 area, so maybe we are close to a bottom on that one.
The bulls need a sold win.  Maybe tomorrow.
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