There was a late rush of buying interest Friday that saved the day, but not the week. The Nasdaq Composite (-3.5%), Russell 2000 (-1.5%), and S&P 500 (-1.0%) all dropped 1.0% or more for the week, which was rankled by growth concerns and technically-charged selling.<\/p>\n\n\n\n
The S&P 500 fell below its 50-day moving average, the Nasdaq Composite flirted with a break of its 200-day moving average, NVIDIA (NVDA)<\/strong> and Alphabet (GOOG)<\/strong> dropped below their 200-day moving averages, Tesla (TSLA)<\/strong> briefly traded below its 200-day moving average before rebounding, and Microsoft (MSFT)<\/strong> fell further below its 200-day moving average.<\/p>\n\n\n\n These are some of the more high-profile cases where the technicals generated some added waves for market participants, yet the crux of the trading matter revolved around fundamental constraints tied to earnings growth concerns and valuation.<\/p>\n\n\n\n That big move late Friday? It was more mechanical than technical or fundamental, with month-end pension fund rebalancing getting called out as the catalyst. We suppose there was some technical charge to it, though, with the Nasdaq flirting with a break of its 200-day moving average.<\/p>\n\n\n\n So, this new week begins with a bid of optimism that there will be some follow through to the recovery effort. Currently, the S&P 500 futures are up 23 points and are trading 0.4% above fair value, the Nasdaq 100 futures are up 145 points and are trading 0.7% above fair value, and the Dow Jones Industrial Average futures are up 106 points and are trading 0.2% above fair value.<\/p>\n\n\n\n There is some speculative buzz in the air following President Trump’s weekend announcement of a U.S. cryptocurrency strategic reserve that will include Bitcoin, Ether, Ripple, Solana, and Cardano. Bitcoin, which traded just above $78,000 at Friday’s low, is now just north of $93,000.<\/p>\n\n\n\n