Hearing Echoes of a Big Market Drop

It is still, as it was a week ago, a tale of two markets. The volatile and high-priced techs that have been the market leaders in recent months are still under pressure, while the less exciting but more stable stocks continue to push higher. 

We see that on the two charts below, first the S&P and then the Nasdaq. They look very different, with the Nasdaq obviously much weaker, and doing so with heavy volume. As I've said, I find that disturbing, because I am so ancient that I was in this business in the early 1970s and recall the demise of the "Nifty Fifty" stocks that triggered a two-year bear market in which the Dow lost nearly half its value. Is that the case here? I do not envision such a huge drop, but I do see similarities to that history that make me extremely cautious. ...240 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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