For the second time in less than a week, the Dow Jones Industrial Average dropped by greater than 1,000 points. While not the worst days in terms of percentage losses, Feb. 5 and Feb. 8, 2018 are the two highest point loss days in Dow history and the only two days where losses surpassed 1000 points.
The S&P 500 dropped 75 points on Thursday and both indexes set a new low close for the year dating back to November 2017.
“Each of these two sequential setups has expanded their bearish aspects. Their second act — be it an intraday decline, or a rejection of resistance, or distributive range — all measured greater than their first, says Rod David “Selling pressure is growing, which requires its rejection to avoid capitulation. Rejection is often achieved, by gapping up above a relevant level. This current series seems unable to do that. And Thursday’s two sets extended to sharply lower lows that make it extremely difficult to reject at the next open.”