Nasty, but one strike does not kill a bull
Yes, Friday was ugly - but "Black Friday" doesn't really have a ring to it and volume - although higher - was not a fearful capitulation. The indices do have their problems, not least those of the semiconductor index and Transport index which both suggest a weak economy: The semiconductor index is threatening long term lows which runs contrary to that of the parent Nasdaq indices and the Transports have created a classic failed breakout and counter breakdown. Given both of these indices were a long way from confirming strength in the Nasdaq/Nasdaq 100 and Dow it should have been of no surprise to have seen a day like today: Factor in "Death Crosses" for the Transports and Small caps and you have a recipe for trouble: What happens at August lows (should they be tested) will be interesting as internals did confirm this low as a major bottom - a break of which would go a long way towards confirming the start of a cyclical bear market withing a secular bear market....