There are a lot of lower tails on these bars. There is clearly an attempt by the bulls to support the market here. Will they be successful? The breadth was slightly negative. New highs increased to 27 while new lows dropped to 149.
The futures got turned back at the 20 and 50 SMAs. They are still above recent lows so I guess the potential short term bottom pattern could still play out.
Biotech stocks started selling off right from the open. That selling put pressure on QQQ and IWM as both those ETFs have quite a few bios in them. Despite them heading down all day SPY managed to make a new intraday high in the afternoon. After 2 PM people noticed the biotech sell off and started selling everything. IBB ended up down over 5%. I did not hear of any specific sector news. I wonder if a big fund decided to use the gap up to liquidate some positions and the selling just fed on itself during the day.
I think the bounce idea is still alive. IBB had huge volume today so it is possible it had a short term volume climax low. If buyers swoop in that could help the broad market. Europe sure enjoyed the Yellen speech. Maybe they won't be selling off on Monday to start the U.S. off on a bad note. Lets see if the bulls have any dry powder burning a hole in their pocket.
The market and sector status pages have been updated. Have a great weekend.
Bob
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