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.