Why Investors Should be Very, Very Worried

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tdp2664 InvestorPlace Stocks opened with a technical recovery yesterday after a drubbing on Wednesday. This followed positive news from Europeand a drop in weekly jobless claims. By 10 a.m., the Dow Jones Industrial Average was ahead by almost 200 points. But a sell-off in the afternoon in technology stocks drove the broad market lower, and by late afternoon, the Nasdaq was deep in the red. A late rally recovered most of the losses, but the Nasdaq closed the day down 0.43%. Yesterday's extreme volatility may not be evidenced by the closing numbers. But note yesterday's trading bar showing a swing from high to low of 4.25%. Despite the dizzying pace, the Nasdaq failed to close higher. Even more important was its failure to hold above the 20-day moving average (green line) and its consistent inability to mount an attack on its 50-day moving average (blue line).