August 2, 2021
Markets

Is Stock Market Risk Increasing?

Last week almost ended poorly for the markets, after heavy selling last Thursday. On Thursday at 10 AM ET, advance/decline data showed there were 369 advancing issues and 2684 declining issues on the NYSE. The volume data was similarly one-sided, with 90% of the volume on the downside.

The major averages rebounded to close Thursday well above the day’s lows and the extreme market internals favored a further rebound. At Thursday’s low, the S&P 500 ($SPX) was down 1.6% from Wednesday’s highs, but then Friday closed at a new high up 0.4% for the week.

The selling Thursday was even heavier in the Nasdaq 100 ($NDX), as it was down 2.3% from Wednesday’s high. Even though it was up 0.7% for the week, it closed below Wednesday’s high of 14,891.2.

The…

Read full article here: www.forbes.com