Sellers Knock Nasdaq Lower Again; XP, ATI, Chart Industries Hold Up | Stock Market Today

TL;DR

The stock market experiences a bearish pullback with the NASDAQ closing below recent lows and adding another distribution day. Investors are advised to raise cash and avoid new buys unless they have a short-term trading mentality.

Transcript

thank you foreign good afternoon everyone and welcome to stock market today it's Ali Corbin kendrieve here with the breakdown of the action in today's session Wednesday August 16th and Ken looked kind of bearish out there today as this Market pullback continues yeah really the second uh straight session where during that final hour of trading you g... Read More

Key Insights

• 👾 The NASDAQ has experienced its second straight session of sellers picking up pace during the final hour of trading, indicating a bearish pullback.
• 🥳 The market has accumulated five distribution days in the past 11 trading sessions, which is a sign of weakness.
• 💦 Oversold levels in the NASDAQ and a drop in bullish sentiment among newsletter writers provide some hope for a market reversal, but caution is advised.
• 🥺 Leading growth stocks are generally performing poorly, making it a challenging environment for new buys.
• 🌍 XP, ATI, and GTLS are three stocks showing technical strength despite the weak market.
• 😚 The S&P 500 is also showing weakness, closing below the 50-day moving average.
• 😮 Rising bond yields and a strengthening US dollar are hindering stocks' performance.
• ☠️ The minutes from the Late July fed meeting revealed ongoing concerns about stubbornly high inflation and the possibility of further rate hikes.

Questions & Answers

Q: Is the current market pullback expected to continue?

The current market pullback is likely to continue as the NASDAQ closes below recent lows and accumulates more distribution days. It is advised to raise cash and avoid new buys unless short-term trading is the strategy.

Q: Are there any positive signs for the market?

Some positive signs include oversold levels in the NASDAQ and a recent drop in bullish sentiment among newsletter writers. However, these factors do not guarantee a reversal in the market's downward trend.

Q: How are leading growth stocks performing in this market?

Leading growth stocks are generally acting weak in this market, making it a challenging environment for new buys. It is advisable to step back, avoid the market, and raise cash.

Q: What is the outlook for the S&P 500?

The S&P 500 is also showing weakness, closing below the 50-day moving average. It is currently above the 10-week line but may face further downside. A bounce in the market should be treated cautiously unless it comes with conviction and higher volume.

Summary & Key Takeaways

• The NASDAQ and S&P 500 both close lower, with the NASDAQ experiencing its second straight session of sellers picking up pace during the final hour of trading.

• The NASDAQ has now accumulated five distribution days in the past 11 trading sessions, indicating weakness in the market.

• The market is challenging for finding decent-looking stocks, but three stocks - XP, ATI, and GTLS - are showing technical strength.