December 1, 2021, 4:15 pm EST
Dow Jones -1000 Points Intraday Reversal
It is a very bearish day for the stock market today. Dow Jones reversed a near +500 points to -461 points that the intraday reversal was nearly -1000 points. More importantly, it lost 200 day-moving-average lines also that finished up underwater for all major moving average lines (20,50,200) within a month (November 8 – December 1).
S&P 500 also fell through its 20 and 50 DMA lines with -1.2% down. Nasdaq was the strongest index among the three that barely hang in the 50 DMA line but the drop was -1.8%.
The reason behind the sell-off is the first case of COVID-19 variants, the so-called omicron was identified in California.
Utilities and healthcare sectors held up better because of their defense capability. Overall, the stock market is going through a very bearish period where most of the stocks lost ground. Especially, the stock market is already in a weak position in terms of breadth readings as we published the article.
The strategy is to take profits, cut losses by reducing portfolio positions. It is very important to take necessary to protect your investment in this type of market.