The Closing Look

Stock Market Commentary:

Stocks fell hard on Monday but pared losses by the close. It was still an ugly day as many names were beaten up badly. The Nasdaq Composite and Nasdaq 100 broke down below support of their bearish flag patterns (highlighted last week). The Small-Cap Russell 200 also broke below January’s low which is not ideal for the bulls. Oil prices fell over 3% on Monday and that continues to hurt sentiment. There was virtually no meaningful economic data on Monday from the U.S.

Gary’s Thoughts: After a 7.3% drop in the Nasdaq from Thursday’s high to today’s low, maybe…maybe that’s enough for this second…maybe. Remember, these wild swings do not change the big picture. More carnage in tech, growth and beta. Gold/silver another good day but overbought. Definite bullish patterns now in gold/silver…but only on pullbacks now.