What to watch: Market-watching takes center stage

The Nasdaq composite, which had been partying like it was 1999, suddenly started to behave like it was the dreaded year 2000 this past week, tumbling farther and faster than it has done in more than two years.

When the woeful week ended, the Nasdaq, which is jam-packed with former highflying Internet and biotech stocks, was 8.2% off its March 5 high, flirting ever so close to an official price correction, or a drop of 10% or more.

What should investors watch next week? That's an easy one: Watch the Nasdaq closely. And watch those highfliers, too, to see if they can regain altitude and start climbing again.

The first thing to look for is any signs of a rebound, a bounce, a string of up days where you get volume on rising stocks outpacing volume on stocks that are falling by a 10-to-1 margin. And keep an eye on big round numbers, like Dow 16,000 and 1,800 on the S&P 500. If the market breaches those numbers in a big way to the downside, that would be negative.

Look out for signs of panic, too. Is the selling in high-priced growth names such as Amazon.com and Tesla pretty much played out, or just getting started? Right now, the bulls are arguing that investors are simply selling their high-octane, volatile stocks and rotating into safer, more stable names.

Watch the earnings parade. If companies report first-quarter earnings that top expectations, bulls might get their courage back. Too stressful for you? Relax, and watch some TV.

Follow Adam Shell on Twitter @adamshell