First They Shoot The Soldiers, Then They Shoot The Generals

By Greg Feirman of Top Gun Financial Planning

Thursday, December 16, 2021 5:43 PM EDT

And then they lost the generals & sought refuge elsewhere. pic.twitter.com/mUAWHjm3WC
— Sven Henrich (@NorthmanTrader) December 16, 2021

(Click on image to enlarge)

The S&P was -0.87%, the Nasdaq -2.47%, and the Russell -1.95% Thursday. All of the Nasdaq’s Wednesday post-Fed gains and more were erased. Apple (AAPL) – the market’s leading stock – was -3.93%. QQQ got hit hard but once again found support at its 50 DMA. Bears will have to crack that to break the market.

I have been pointing out for months the carnage beneath the surface as the “soldiers” got taken out one by one. However, that weakness has been masked by the “generals” – leading stocks like AAPL – whose size has masked the underlying weakness in the market-cap-weighted indexes. Thursday bears started to get to the generals. If that continues, the market will rollover. While I expect that to happen, my guess is it’s a 2022 story.

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