More nausea!

Gary is out today for the Jewish holiday but he conveyed a few things about this week’s action yesterday.

The bearish wedge markets traced out  has now been broken to the downside.  This is not just here but around the globe.

While now very oversold, Biotechs were the latest to break badly.

Just yesterday, they started coming after the last of the strength in names like AMZN, FB and GOOG…names that have provided the Nasdaq and NDX with their relative strength. Those names had better pull up their bootstraps.

We are now entering end of month and end of quarter window dressing. Of course, window dressing is illegal and doesn’t happen! Just keep in mind how uncanny end of month and especially end of quarter almost always leads to some upside. We would not be surprised to see some bouncing because of this but as Gary says, that is the trees. The big picture (the forest) remains in very poor shape.

Adam Sarhan