U.S. Stocks closed at their lows of the day today, with their worst losses since October 1st. The worst performer among the major averages was the Russell 2000, down over 20 points on the session. This took the average below its October lows, suggesting a significant double top is in place.
The Dow Jones Industrial Average continues to hold up a bit better than the rest of the averages, down only 1.21% today. By contrast, the Nasdaq Composite was off over 2.6%.
The culprits today were a stronger Dollar, which rallied for a 5th day in a row, and a weaker than expected report on new home sales, which were reported to be down over 3% in September.
For intermediate term traders who trade high momentum stocks, today's activity should have you 100% in cash if you aren't there already. Daytraders should find the going easier on the short side than on the long side until we see a move to the upside that is at least as strong as today's move was to the downside.
Stay Tuned!
Scott Cole
www.bestdaytradingstocks.com
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