Climateer Investing: "Stocks Lose Again, As Nasdaq Sinks To 50-Day Line"
"Stocks Lose Again, As Nasdaq Sinks To 50-Day Line"
U.S. stock indexes stumbled Monday, as the Nasdaq led the way down for the third session in a row.
The Nasdaq composite dropped 1.4%, while the S&P 500 and the Dow Jones industrial average each fell 0.6%. Small caps held up slightly better with the S&P 600 dipping 0.5%.
Volume was lower on both major exchanges, according to preliminary data.
The Nasdaq closed mildly beneath its 50-day moving average, an area where the index will be testing support. A bounce off the line would be bullish. A slicing under would be bearish.
The S&P 500 has a small cushion above the 50-day line, but is testing previous resistance at the 2,800 price level.
All four FANG stocks were down. Facebook (FB) sank 2%. Amazon.com (AMZN) also lost 2%. Netflix (NFLX) skidded almost 6%. Alphabet (GOOGL) dumped 1.8%. Apple (AAPL), which some consider deserving a place in the same leadership group, trimmed 0.5%.
Apple reports fiscal Q2 results after the close on Tuesday. Please read this recent Stock Market Today column for details on the outlook for Apple stock.
Among IBD's 197 industry groups, software and computer stocks took the day's hardest hits. Office supplies and oil stocks advanced.