Sellers Dictate Action As Leaders Show More Cracks; MTH, META, LI In Focus | Stock Market Today

TL;DR

The market experienced a worsening pullback, with the Nasdaq falling close to 8 percent from its recent high.

Transcript

thank you foreign foreign everyone and welcome to stock market today it's Allie Corman kendrieve here with a breakdown of the action in today's session Thursday August 17th and breakdown might be an appropriate word here can the market pullback is worsening and today was a pretty ugly day yeah I think at the nasdaq's low today it had fallen close t... Read More

Key Insights

• 🥺 The market is oversold, but the damage to leading stocks is a cause for concern.
• 💁 Growth stocks typically form bases and experience pullbacks of 20 to 25 percent during market pullbacks.
• 😮 Rising bond yields and the U.S. dollar are headwinds for the market.
• 🤨 It is advisable to raise cash and be prepared for further weakness in the market.
• ❓ Energy stocks, such as XLE, may be worth considering given the weakness in other sectors.
• 👪 Home builders, retailers, and China EV stocks are experiencing weakness in the market.
• 🫥 Lee Auto, a China EV stock, is holding support at its 10-week line but carries risk.

Questions & Answers

Q: How much has the Nasdaq fallen from its recent high?

The Nasdaq has fallen close to 8 percent from its recent high, indicating a significant pullback in the market.

Q: What does it mean when a market uptrend is under pressure?

When a market uptrend is under pressure, stocks that had been holding their 50-day lines are targeted and experience increased selling and weaker closes.

Q: How many higher volume declines have occurred since late July?

There have been nine higher volume declines since the second half of July, indicating increased selling pressure in the market.

Q: Why are bond yields and the U.S. dollar rising?

Rising bond yields and the U.S. dollar suggest that the market may be anticipating sticky inflation and more rate hikes from the Federal Reserve.

Summary & Key Takeaways

• The Nasdaq has experienced a third straight session of fading early gains and closing near lows, indicating pressure on the market uptrend.

• Stocks that had been holding their 50-day lines were targeted, leading to increased selling and weaker closes.

• The decline in the market is less than 10 percent off its high, indicating an intermediate-term correction, but the price action has been terrible.