SPX Joins NDX Down Over 20% From October Peak...

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SPX sinks to a new 52-week low, on Christmas Eve, marking a 20% drop (the definition by many of a bear market) from its high on Oct 3.  About 40% of this dramatic drop can be attributed to comments by Fed Chair Powell on Oct 3 and again on Dec 19.  About 25% to the IMF Global Risk Report around Oct 9.  About 25% with the Senate failing to pass a funding bill on Dec 21 and the balance can be attributed to concerns about an inverted yield curve surfacing around Dec 4, ongoing concerns with trade negotiations with China and falling oil prices.

The DJIA, closed down 653 points at 21,792, led by weakness in BA, UNH, JNJ, MMM and NKE.  This is the thirteenth close below 25,000 since Dec 6.

All eleven sectors were lower on Monday, led by real estate XLRE +0.99% and staples XLP +0.62%.

SPY down 6.36 at 234.34 on 147.3 million shares, 13% above average volume. Down on lower volume.

VIX up 5.96 at 36.07 

Oil down 2.74 at 42.68

TLT up .60 at 121.32 on 8.3 million shares. 

HD -1.46%, WMT -1.50%, led the DJIA, 0 advancers, -3

NEM +3.13%, PCG +1.76% and LKQ +1.40%, led the SPX.

CTRP +1.32% and NTES +0.25% led the NDX.

Long term up trend intact.  3-day short term trend is down.

Up: 

Down: IWM, SPY, DIA, QQQ

Breadth was stable on Monday, as decliners led 2,325 to 605 on the NYSE and led 2,242 to 806 on the NASDAQ

The SPY MFC green line is pointed down at 4 and is short-term bearish.

Uptrend sectors:  

Neutral sectors:  XLU,

Down trend sectors: XLRE, XLB, XLV, XLP, XLI, XLY, XLC, XLK, XLF, XLE,

The 6-month intermediate trend is down.  The ten-day trend is down.

3-month Intermediate Term Market Trend: Down

3-day Short Term Market Trend: Down

2 of 100 NDX stocks closed higher on Monday.

1 NDX stock is above its 30 DMA:  NTES,

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 1

AVGO

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