Thursday Wrap: Underlying Weakness
In early trade, the S&P 500 $SPY and Dow Jones Industrial Average $DJIA printed new all-time highs. However, both spent the rest of the day testing lower and ultimately and hilariously finishing flat for the day.
Amazing how the $SPY hangs in despite the carnage in mo-mo land
— Tsachy Mishal (@CapitalObserver) Apr. 3 at 09:04 AM
However, cashtaggers on StockTwits were quite busy today keeping tabs on the carnage taking place under the hood. Many of this year’s fashionable stocks continue to get decimated.
Take a look at these losses today, most of which piled on to losses that have been accumulating in these names for weeks now:
These are one day losses, and many of them (mercilessly) finished off their lowest levels of the day! Cashtaggers are growing concerned these bone-crushing slides are a red flag for the broader market and may soon begin to drag the rest of the indexes lower:
— Mike (@CrimeD34) Apr. 3 at 11:38 AM
The kinds of losses these names have experienced — many with reasonable fundamentals — will be scary if the indexes begin to follow suit:
— Frank Zorrilla (@ZorTrades) Apr. 3 at 10:42 AM
— LaDucTrading (@SamanthaLaDuc) Apr. 3 at 01:25 PM
A confusing data point is that sentiment on the major indexes has been improving in recent days/weeks… most dramatically so in small cap land, as visualized by the Russell 2000 $IWM sentiment chart:
The good news: all is not bad. I’ll leave you with this silver lining:
— DarvasTrader.com (@DarvasTrader) Apr. 3 at 01:40 PM
The Bulls are going to need new leaders to emerge if they want this bull market to resume higher. There has been too much damage done to the former leaders.
~ Sean McLaughlin (@chicagosean)
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