Stocks ended the week a long way from a bear market. But the "bear" word has started to crop up more in discussions among market ***** ysts. The Nasdaq ended below recent lows and leaning toward its next-nearest tests, the lows from June 26 and June 9. The S&P 500 finished ever-so-slightly below its 50-day moving average, equal to its last slip below the line from June 26.
On the downside, Sandisk (SNDK), Astera Labs (ALAB) and Marvell Technology (MRVL) booked the week's biggest losses on the Nasdaq 100, with an average drop of 25.3%. Paypal Holdings (PYPL), Cintas (CTAS) and Palo Alto Networks (PANW) held the upside, showing a 15.3% average gain. Results were similar on the S&P 500, but adding IBM (IBM) on the downside and Valero (VLO) among the week's winners.
The market is not providing a whole lot in the way of clues as to what comes next. Both the Nasdaq and the S&P 500 continue to trade below their early June highs. And rather than test those highs, wanting to break resistance and move higher, the indexes are instead testing lows and breaking technical support. Sellers are quietly overpowering buyers.
"Look, we are a trend-following methodology," says IBD Market Research Director Justin Nielsen. "And it's pretty easy when you're in a downtrend: we just kinda stay out. It's pretty easy when you're in an uptrend — that's where we like to push it, where we like to make money. This sideways action, this is where it's really tough."
That, for the time being, prescribes a course of caution: build watchlists, don't buy; rotate to cash where feasible and manage your capital with the understanding that it is unclear, for now, just where the stock market may be headed next.
On the downside, Sandisk (SNDK), Astera Labs (ALAB) and Marvell Technology (MRVL) booked the week's biggest losses on the Nasdaq 100, with an average drop of 25.3%. Paypal Holdings (PYPL), Cintas (CTAS) and Palo Alto Networks (PANW) held the upside, showing a 15.3% average gain. Results were similar on the S&P 500, but adding IBM (IBM) on the downside and Valero (VLO) among the week's winners.
The market is not providing a whole lot in the way of clues as to what comes next. Both the Nasdaq and the S&P 500 continue to trade below their early June highs. And rather than test those highs, wanting to break resistance and move higher, the indexes are instead testing lows and breaking technical support. Sellers are quietly overpowering buyers.
"Look, we are a trend-following methodology," says IBD Market Research Director Justin Nielsen. "And it's pretty easy when you're in a downtrend: we just kinda stay out. It's pretty easy when you're in an uptrend — that's where we like to push it, where we like to make money. This sideways action, this is where it's really tough."
That, for the time being, prescribes a course of caution: build watchlists, don't buy; rotate to cash where feasible and manage your capital with the understanding that it is unclear, for now, just where the stock market may be headed next.
3 months ago
