Wang’s Happy Trading

The market’s downward momentum accelerated drastically today by the low ISM number, stirring more economic concerns. The market could not hold its 10-day MA and it slid continuously until the close.

The Dow was down 370.03 points; SPX fell 44.18 points; and Nasdaq tumbled 73.28 points.

Most sectors were lower today:

VIX jumped +8.66%. Techs were very weak with SOX (semiconductors), BTK (biotechs), and SWH (software) all losing more than 3%. GLD (gold) and GDX (gold miners) continued to slide. PBW (clean energy) fell more than 4%. FXI (Chinese ADRs) gave up nearly 7%!

SPX

SPX lost 44.18 points to close at 1336.64. It closed below both the 10-day and 20-day MAs. The next support is the 1320 level. Its MACD also turned lower.

Nasdaq

Nasdaq tumbled 73.28 points to close at 2309.57. It also closed below the 2350 level and the 10-day MA. It is looking to test the recent lows. 2300 could provide some support. We’ll have to see how things go tomorrow.

This afternoon, after the market went below the 10-day MA and not seeing anything strength, I said on the member board,

“HappyTrading
Posted February 5, 2008 at 10:29 am | Permalink (Edit)
market
VIX has not shown intraday top yet; with 10-day MA not holding quite well, the market may need to test the recent lows: SPX 1320, Nasdaq 2300”

The market is already approaching those levels. The drop today was so sharp that if those levels don’t hold tomorrow, we could see a test of recent lows. So be very careful.

This morning, NYX and CME both reported solid earnings, but, their stocks both suffered big drops. NYX was down 14.14% and CME was down nearly 5%. After the market, JDSU reported earnings that easily beat the estimates. Its shares jumped over +20%!! BHP announced a raised offer to acquire RTP, an increase to 3.4 shares of BHP for every share of RTP from the original 3-for-1 offer. RTP shares jumped $20.48, or +4.86%, while BHP shares dropped $1.08, or 1.55%.

Good night and HappyTrading! ™