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Stock Market Today: Bears Bite Stocks Again; Can Bitcoin Trust, Alphabet Fall More? | Stock News & Stock Market Analysis

Profit-taking remained intense on Friday as the major indexes all fell in lock step and large-cap firms gave back more of January’s big gains.

X The Nasdaq composite, down 1.2%, is on course to lose more than 2.5% for the week and halt a strong four-week winning streak. Alphabet (GOOGL) led the decline, gapping down 5% to 1,122 in heavy turnover.

Yet the world No. 1 internet search engine remains above its rising 50-day moving average (painted in red in every IBD Chart), so long-term shareholders can stick with the stock and see if it will fight to maintain its solid uptrend.

Alphabet cleared an 11-week flat base at 1,006.29 in October and ran up nearly 20% before cooling off. The stock currently holds a top-notch 99 Composite Rating from IBD Stock Checkup.

 

The S&P 500 also dropped 1.2% as internet content, oil and gas, metal ores, coal and chipmaking shares got trampled with losses of 3% or more.

The Dow Jones industrial average dropped 1.5%, while the small-cap Russell 2000 sank nearly 1.4%. Volume is running a tad higher vs. the same time Thursday on both main exchanges.

Meanwhile, Bitcoin Investment Trust (GBTC) continued to plunge following its climax run-type action in December and a massive split of its shares of a little more than 90 to 1. The exact split is 9,091 to 100.

Bitcoin, down 28% to 12.95 for the week, is now getting closer to giving back all of the gains from a late-November breakout from an extremely deep cup with handle at 10.93.

As seen in a weekly chart, Bitcoin got slammed beneath its 10-week moving average during the week ended Jan. 19, a late sell signal that came well after the Bitcoin-tracking fund undercut its short-term 10-day moving average. With fast-moving stocks or ETFs, a clean break of the 10-day line following a big run-up serves as a timely moment to take profits.

Bitcoin is suffering a negative image following a major digital currency theft in Japan and the ongoing issue of steeper regulatory control of local alternative digital currency trading in South Korea.

Elsewhere, Japan’s Sony (SNE) thrust higher, rising 8% to 53.13 in heavy volume thanks to robust December-quarter results (adjusted earnings of $2.03 a share, revenue up 15% to $23.72 billion). The media and electronics giant has gained more than 20% since breaking out of a long flat base at 41.75 Oct. 31 and then broke out again with a narrower flat base at 48.43 on Jan. 5.

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