The stock market’s slide continued on Friday as Wall Street once again declined to buy the dip in riskier stocks.
The Dow Jones Industrial Average fell 216 points, or 0.5%. The S&P 500 was down 0.5%. The Nasdaq Composite was down 0.8%.
The yield on the 2-year Treasury note rose to 3.58%, while the 10-year yield was up to 4.11%.
Bespoke Investment Group co-founder Paul Hickey writes that stock market bears have “taken control.”
“So far this month, the year’s biggest winners have been hit the hardest, but those are also the names with the most lofty valuations,” he writes.
Thursday’s slide marked the third 1% decline for the S&P 500 in six sessions and the second in November, writes Frank Cappelleri, founder of technical analysis firm CappThesis.
“We’ve yet to see a meaningful response from dip buyers — something that feels overdue at this point,” Cappelleri writes.
Cappelleri writes that yesterday’s action triggered a “bearish pattern.” He sees a downside target of 6610, which is less than 2% below current levels. But put together with the recent pullback, it would mark the index’s largest drawdown since the April lows.
“We respect every pattern—bullish or bearish, big or small—because the key is understanding what’s working and what’s not,” writes Cappelleri. “If this bearish setup continues to play out, it could signal that momentum is shifting further to the downside.”
