The major market averages fell with the small cap Russell 2000 taking it on the chin the hardest. While the broad sell off hit stocks across the board on higher volume, averages retraced part of their losses. As the market has been trying to find its legs, a bounce is looking less likely as the number of distribution days notch higher. The NASDAQ Composite is struggling to clear its 50-day moving average while the S&P 500 retests its 50-day moving average.
While Netflix (NFLX) had enough volume for a bottom-fishing pocket pivot yesterday, the environment on the long side remains risk-off, ie, higher risk trades are off the table, so any new positions should be reflective of this.
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