Major averages tanked on sharply higher volume as the correction continues. The NASDAQ Composite is now more than 7% off its peak as it heads straight for its 200-day moving average, and the S&P 500 is more than 3% off its peak where it closed below its 50-day moving average for the first time since February.
Damage to leaders continues to well surpass that of other stocks. Formerly strong groups such as internets and biotechs continue to fall with the Market Vector Biotech ETF BBH off more than 5% on Thursday. That said, quantitative easing is on full blast so if a floor cant be found within the next couple percentage points on the NASDAQ Composite, the major index will have fallen from its peak more than it has since QE began on full tilt in January 2013 which could be the start of a deeper correction that exceeds 10%. Such a correction has not occurred since November 2012.
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