Anyone knows why did NDX dropped 20 points in one hour?
Big Fades Can Take a Toll
6/7/05 2:18 PM ET
The frantic buying this morning has given way to some profit-taking this afternoon. It is primarily caused by the simple fact that the market is extended. There is no bad news and nothing negative. We just have a somewhat overheated market that is badly in need of a rest.
Big intraday U-turns like we are seeing now are often indicators that the market is topping out, but we'll have to see how we close before we can draw any major conclusions. Big fades take an emotional toll on buyers, so they can't be blithely ignored.
We still have solid positive breadth, which is a major plus, but profit-taking has definitely kicked in.
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