Stocks drop to the lows of the day
The S&P 500 is below 2700 and the 100-day moving average after this weeks test of the 200-day moving average failed.
Technicals are playing part in the market. The S&P 500 bottomed in December at the 200-week moving average and now the 200-dma has capped the rally. The trigger (or excuse) for the accelerated selling today was a comment from Kudlow that the US and China still had a “pretty sizeable distance to go” in talks.
The 55-day moving average down at 2618 is a possible retracement level to watch.