Tuesday, February 26, 2008

How the Mighty Have Fallen

Google, Apple and Bidu were three market darlings for the latest rally. They have fallen on tough times, with each one trading below their respective 200 day SMA.

IBD noted this in an article from today's paper:

When leaders go beyond a normal correction into the ugly zone, any subsequent bounce is suspect.


It's enough to know that this is a tough market. Neither the indexes' performance year to date nor the Feb. 13 follow-through day has brought much to cheer.

The IBD 100 index was up 2.4% for the week, but it's down about 14% year to date.

While the Nasdaq, the S&P 500 and the Dow have managed to avoid undercutting their Jan. 22-23 lows, the IBD 100 made a fresh low in February.

A leading index that's leading downward and bruised leading stocks do not inspire confidence.

Their article focuses on different stocks, but the underlying story is the same. It's a really tough market right now.