Last week ended on quite the down note. Friday’s big selloff saw the Dow Jones Industrial Average drop 2 percent, or 318.2 points. The Standard & Poor’s 500 Index fell 2.1 percent (38.2 points), while Nasdaq Composite Index declined 2.2 percent (90.7 points).
The technically significant issue was that Friday was a 90/90 day — more than 90 percent of the volume (94 percent) and of the points (97 percent) was down.
A brief explanation for those of you who may not be so technically oriented: When markets experience a bout of intense selling — those trading sessions when 90 percent of the volume is down, and nine out of 10 stocks close lower — it can mark a short-term reversal in a bull run. Typically, it signifies a shift in psychology among larger institutions.