Black Friday: Bears Have The Ball After New COVID-19 Variant

Time, Time Management, Stopwatch, Industry, Economy

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The emergence of a new strain of COVID-19 caught markets by surprise on Friday, and it will likely be the focus in the days to come. Friday’s nasty selloff has also given the ball back to the bears. We’ll see if they can run with it.

NYSE + NASDAQ Advancers to Decliners was an ugly 1,379 / 6,472 in Friday’s half session. Only 17% of stocks (1 in 6) advanced on the day. NYSE + NASDAQ volume was notably high for a half day at 7 billion shares traded – down only 8% from Wednesday’s full trading day.

Many traders were on Thanksgiving vacation on Friday, and it was a half-day, so I would expect to see follow through on Monday, depending on the information that emerges about the new variant over the weekend.

If we do see follow through on Monday, keep an eye on the Nasdaq’s 50 DMA at 15,225, which is now clearly in sight. If bulls can’t defend that, that would add a lot of credence to my call from Monday that the top is in – though the Fed remains a wildcard.

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