US stock markets catch a sizzling late-day bid but Nasdaq ends three-week winning streak

There was no lack of drama in the final day of equity trading in what was a wild ride in August. The S&P 500 opened strongly and then gave it all back to trade in negative territory at midday. However some steady bids emerged in the afternoon before a massive wave of buying late.

Much of it was likely technical into a month-end long weekend but it wraps a bow on a lively one.

• S&P 500 1.0%
• Nasdaq Comp +1.1%
• DJIA +0.6%
• Russell 2000 +0.3%
• Toronto TSX Comp +0.2%

On the week:

• S&P 500 +0.25%
• Nasdaq Comp -0.9%
• Russell 2000 -0.4%
• Toronto TSX Comp -0.1%

On the month:

• S&P 500 +2.3%
• Nasdaq Comp +0.6%
• DJIA +1.8%
• Russell 2000 -2.0%
• Toronto TSX Comp +0.6%

Those monthly numbers aren’t impressive at first blush but they come after massive selling at the outset.

The Nasdaq Composite monthly chart now shows a double doji. That’s a setup for a big move to come. Given the impressive recovery from the August declines, I’ll take the upside but it’s tough to have confidence after the Nvidia decline and with a negative September seasonal backdrop.

This article was written by Adam Button at www.forexlive.com.