Stocks sold off hard Friday as the market anticipated rate hikes following comments by Fed officials. All 30 Dow components finished lower, while Apple breached key support.
The Nasdaq slumped 2.5% after hitting a record high during the week; the Dow Jones industrial average and S&P 500 each lost more than 2%. All three indexes fell 2% for the week. The Nasdaq managed to barely hold above its 50-day moving average.
Oil, gold and steel stocks were among the biggest losers in the stock market today, as the price of West Texas Intermediate oil sank to $46.47 a barrel -- down 4% Friday, but still up nearly 5% for the week. Gold futures shed 0.7% on Friday to $1,332.80 an ounce.
Boston Fed chief Eric Rosengren's remarks that he's in favor of gradual rate hikes were enough to send the market into a downward spiral.
The Dow was a sea of red, with Verizon Communications (VZ), Boeing (BA), Caterpillar (CAT) and Coca-Cola (KO) leading the bloodbath with declines of more than 3% each.
Verizon fell to its lowest level since starting a flat base with a 57.05 buy point, though the pattern is still intact. Boeing dropped below its 50-day and 200-day moving average lines as it continues to form a flat base with a potential entry at 139.55. Coca-Cola plumbed the lowest level since the start of its current flat base, but the pattern is still well within the 15% maximum correction for a flat base.
Apple extended Thursday's slide with a 2% drop in heavy volume, which sent the stock back below its 50-day line for the first time since late July. The iPhone maker has been shaping a cup with handle with a 110.33 buy point, but heavy downside volume is a bearish sign.
On the IBD 50, Acacia Communications (ACIA) plunged 10% in fast trade to a two-week low, extending its decline for a third straight session. Shares of the highflying recent new issue are still up north of 360% from their May 13 offering price.
LGI Homes (LGIH) slumped 8% in heavy volume as it breached its 50-day line intraday before closing above the support level. The stock is 11% off an all-time high reached Wednesday.
The Fed's Dennis Lockhart, Neel Kashkari and Lael Brainard are scheduled to speak Monday.
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