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The market slipped a bit, as expected. Yesterday, I commented, “momentum should carry through tomorrow morning. Then, we might get a violent swing. If the market is strong, it could go back up late tomorrow… The important thing for the market tomorrow is not to fall back too much. After a huge up day like this, we should see profit-taking.“
The market jumped higher at the open, but, soon slipped back into the negative. With about an hour left in the trading, the market made an attempt to turn green; but, was unable to hold. The Dow ends down 76.62 points; SPX slid 5.34 points; Nasdaq was much weaker, losing 65.24 points.
The financials were on the stronger side: GS +10.72%; WFC +10.26%; BAC +16.41%; PRU +8.31%. Techs were mostly lower: AMZN -9.93%; BIDU -5.94%; GOOG -4.81%. After the market, INTC reported earnings that beat the estimates. INTC traded up +3.7% in after-hours.
Here’s how the market closed:
Techs were weak, with SOXX (semiconductors) down 5.01% and INX2 (Internet) losing 4.64%. USO (oil) lost 4.06%. GDX (gold miners) added +2.2%. XLF (financials) continued higher, gaining +6.45%. FXI (Chinese ADRs) lost 4.85%.
SPX
SPX slid 5.34 points to close at 998.01, below the 1000 level. it tested the 10-day MA today, but, did not close above. The MACD went higher.
Nasdaq
Nasdaq dropped 65.24 points to close at 1779.01. It nearly touched 1900 today, but, closed below 1800. Its MACD was up.
After the morning pop and the profit-taking, the market was able to close with minor losses, although the techs were much weaker. VIX was essentially unchanged, closing just above 55. We need to see the market above the 10-day MA to feel more comfortable. From where the market closed today, the profit-taking could easily slip back to test the recent low. We’ll have to see if the market can get stronger tomorrow to close above the 10-day MA.
Good night and HappyTrading! ™
