The three major indexes suffered their worst weekly declined since October as frenzy trading in heavily shorted stocks hurt investor sentiment.

The Dow, S and P 500 NASDAQ ended Friday roughly 2% lower for the week.

The three indexes each dropped more than 3% for the month.

The Dow and S and P finished in the Red Clear Bridge Investments investment strategist Jeffrey Scholesy says the index's could pull back up to 10% because market sentiment is overly bullish.

We thought that positioning was pretty stretched as we came into January.

Optimism was off.

The charts put call ratios were at levels last seen in 20 years ago.

He also had record margin positioning.

There is a lot of optimism and all of the investor sentiment survey, so I think the market was due for a bit of a breather, a little bit of a consolidation.

Worries of a short squeeze grew Friday.

A some trading platforms allowed retail investors to resume trading shares of Gamestop and costs.

Shares of the video game retailer jumped 68% and the headphone manufacturer rose 53%.

Hedge funds betting that those stocks would fall recently sold off investor favorites to cover billions of dollars in losses.

Apple and Amazon were among the big decliners.

Shares of Johnson and Johnson fell nearly 4%.

The drug maker said its single dose vaccine was 72% effective in the U.

S and 66% globally in preventing Cove in 19.

But that fell short of the high bar set by Pfizer.

Beyond Tech and Madonna, who's vaccines were found to be 95% effective when given in two doses.