The market struggled all day today and ended near the day’s low. Further economic worries infused the market with anxiety. The Dow ended down 172.65 points; SPX lost 22.05 points; and the Nasdaq stumbled 61.28 points!
Here’s how the market looked at the close:
VIX jumped +5.37%. HGX (housing), surprisingly, closed in the green. XLF (financials) lost 1.06%. Techs were weak: INX2 (Internet) -3.1%, SOX (semiconductors) -1.58%, BTK (biotechs) -1.87%, and SWH (software) -2.39%. Metals took a beating today, as GDX (gold miners) was down 3.97% and XME (metals and mining) slumped 3.05%. FXI (Chinese ADRs) gave up more than $10. Even PBW (clean energy) slid $1.22.
SPX
SPX lost 22.05 points to close at 1445.90. Its 20-day MA couldn’t hold today and it closed below all 3 daily MAs. The next support is at 1440.
Nasdaq
Nasdaq displays a similar picture, closing below its daily MAs at 2574.46. Its next nearest support is at 2550.
The market is not looking very healthy right now. So, we’ll have to be very cautious. The market opened below the 20-day MA today and could not get back up. This weekend, I said, “The market is in a critical condition. For the new week, we’ll be watching to see if the 20-day MA (cyan line) can hold. To feel more bullish, we’ll need to see the 30-day MA (black line) turn up, which would probably take a rally of a few consecutive days. If the market can’t hold the 20-day MA, we might be looking for some downside plays.” We played some quick trades on the short side today, but, didn’t want to hold them overnight. I’ll wait to see what GS has to say with its earnings tomorrow morning.
This morning, PCLN was downgraded by Citigroup, sending its shares tumbling almost $8 to close at $109.31. It traded as low as $104.65 today. AAPL received a raise in its price target to $235/share. But, it still traded down with the rest of the market, giving up almost $6. After the market, ADBE reported a solid quarter and announced a share buyback program. But, still, its shares traded down fractionally in AH. JASO made an new all-time high today, trading at almost $74/share. It slide back down with the rest of the market to close at $68.07, down $1.78 for the day. I’m finding this interesting as it might be presenting an opportunity to get back in.
Good night and HappyTrading! ™
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