Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
The NASDAQ is taking the brunt of the hit today for obvious reasons. Â It is remarkable to see the divergence in the indexes today as the Dow is sailing along on the backs of IBM and Caterpillar. Â Meanwhile most of the stocks the retail crowd likes to trade are being smashed. Â Small caps are actually positive in relation to the S&P 500 and NASDAQ – rare in 2012.Â
That said the indexes have fallen from peak, but it’s been in a very rotational manner – only a handful of days have been very seriously in the red with all groups falling together as we saw often in latter 2011. Â It would seem hard to believe a bottom is in put place when people still “want” to buy. Â And people continue to look for hideouts as the sector rotation is showing. Â Usually a good bottom is in when “dip buyers” emotionally don’t want to buy.
If you are keeping track at home these are the drops versus peaks in late March
- NASDAQ -5.8%
- S&P 500 -3.7%
- Russell 2K -6.2%
- DJIA -2.4%
The action in the S&P 500 and DJIA show why it doesnt feel like much of a correction – while the NASDAQ and R2K is showing the deterioration under the covers.
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