NEW YORK (TheStreet) -- The markets must bounce soon, or else we could be headed for a short-term change in trend.
Stocks did a sudden about-face midday Friday and wiped out earlier gains in reaction to an escalation of conflict in Ukraine.
They had been on track for a fifth day of gains out of six on Friday, when the S&P 500 (SPY) suddenly dropped 0.45% to 1,946.46 and the Dow Jones Industrial Average (DIA) fell 0.11% to 16,694.44. The Nasdaq (QQQ) slipped 0.22% to 4,443.28.
MKM Partners' chief market technician Jonathan Krinsky said after the SPX traded up to 1,964 on Friday, just shy of its July 31st high of 1,965, it has seen a "fierce" rejection, and is now trading back near Thursday's low of 1,947.
The TICK index of stocks trading on an uptick minus stocks trading on a downtick was registering a -1464, the lowest reading since March, which indicates very aggressive and emotional selling, said Krinsky.
Bloomberg reported that Ukraine said its troops attacked and partially destroyed an armed convoy that had crossed the border from Russian territory. The Ukrainian government troops engaged the vehicles that had arrived overnight through a rebel-held section of the border and Ukrainian soldiers continue to come under shelling, including rounds fired from Russia, according to Bloomberg.
The U.S. manufacturing sector remains healthy, according to latest government figures. Industrial output increased by a strong, more-than-expected 0.4% in July. The Empire State Manufacturing Index slid back in August after a substantial gain in July to a still solid 14.7.
The August University of Michigan Consumer Sentiment Index came in lower than expected after the stock market's pullback in recent weeks, but is expected by economists to be upgraded in the final August estimate as stock prices have been rallying again and the labor market appears to be expanding.
In Friday's top corporate headlines, Coca-Cola (KO - Get Report) was popping 1.92% to $40.95 and Monster Beverage (MNST - Get Report) was surging 30.82% to $93.73 on the announcement that the world's largest soda-maker is paying $2.2 billion in cash for a 16.7% stake in the energy-drink upstart.
Analyst actions were also playing a role in Friday's individual stock action. Gilead (GILD - Get Report) was up 0.89% to $97.22 after being initiated with an outperform rating at FBR Capital Markets. Omnivision (OVTI) was slumping 3.04% to $27.43 after being downgraded at Robert Baird to neutral from outperform. Steve Madden (SHOO - Get Report) was ahead by 2.69% to $33.19 after being upgraded at Sterne Agee to buy. Its Dolce Vita purchase should help boost growth, Sterne Agee said.
--By Andrea Tse in New York