August 18, 2021, 10:10 pm EDT
Red Color Dominated
Red color dominated the map as shown that meant another warning signal after yesterday. Only a few industries like retailers (TJX, ROST, LOW) and automobile (TSLA, GM) were in green when DJIA lost -382 points, and all major indexes retreated about -1%.
Slow down in July sales, increase in COVID-19 cases, and upcoming Fed taper action all contributed to weakness at top of the record level two days ago.
We could use technical analysis to determine whether the bulls are still alive are on the 50 day-moving-average (DMA) lines. Both DJIA and S&P 500 are still above it but Nasdaq is at the edge of the 50 DMA. Breaking below the 50 DMA would indicate the intermediate trend changes to the downside if it cannot be recovered in the following weeks. Let’s wait and see.
