NEW YORK (TheStreet) -- It's official: As of Friday, all stock market indexes are now trend bearish.
It has been quite a long time since I have been able to declare the indexes all bearish. Friday was another rout in the markets, as the DJIA closed down another 143.47 points to close at 16026.75. The S&P 500 closed down 17.39 at 1815.69. The Nasdaq was down 54.37 at 3999.73 and the Russell 2000 closed at 1111.44, down 16.22 points.
As I have been mentioning for a while now, the indexes were out of sync, with the Nasdaq and Russell 2000 trend bearish vs. the DJIA and the S&P 500 trend bullish.
The trend is a 3-month or more time frame. How this out of sync market issue was going to resolve itself was the only issue that remained. Was the DJIA and S&P going to lead the Nasdaq and Russell 2000 from their bearish trend? The answer is clearly No after Friday's trading.
All indexes are now firmly in trend bearish territory. There is a definite change in market character. Traders can no longer have the buy the dip mentality. With all bullish trend support levels broken, selling into the up moves will be the proper course of action for traders.
There has been some serious technical damage to this market. It will not be easy to recover those support levels. They have now become resistance levels. It was extremely necessary to understand where those technical levels were. Many traders and investors have been hurt this past week by this market selloff and not knowing the signals for the bearish condition.