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The market suffered another setback today, as target slashes poured in from various companies. The latest came from ERTS after the market, and its shares traded 10% lower. Solar stocks were especially weak today: FSLR -13.15%; SPWRA -11.61%; TSL -12.18%; ENER -6.99%; STP -13.84%. Financials were also weak: WFC -6.61%; GS -5.68%; BAC -4.99%; JPM -6.93%.
Congress is working diligently on ironing out the details in the $15 billion short-term loan to the automakers, although the conversation continues. The Dow closed down 242.85 points; SPX lost 21.03 points; Nasdaq fell 24.40 points:
SOXX (semiconductors) held up surprisinly well even after unfavorable news from some big companies in the sector, adding +4.84%. OIH (oil services) went up +2.1%, while USO (oil) lost 4.62%. XLF (financials) fell 4.02% and HGX (housing) lost 4.5%. PBW (clean energy) tumbled 5.94%. FXI (Chinese ADRs) dropped 4.03%.
SPX
SPX lost 21.03 points to close at 888.67, below the 900 level again. It did manage to stay right at the 30-day MA. MACD went up.
Nasdaq
Nasdaq fell 24.4 points to close at 1547.34. It briefly went above 1600 today, but, could not hold that level. Its MACD was higher.
This market is still very volatile, with VIX staying near 60 (VIX closed at 58.91). Market indices closed right at the 30-day MA. But, as I’ve been saying, the market does not have a bottom until that 30-day MA turns up! It has flattened. We’ll probably need to see the market catch the daily upper BB to get the 30-day MA to go higher. Tomorrow could be a very critical day, as the market closed right at that 30-day MA, which could act as a pivot point. The market seems to be waiting to hear how the Congress decides on the bailout plan for the automakers. Even if the Congress gets the plan out tomorrow, it’s difficult to know how the market will react, and the voting still needs to come. So, let’s be patient and wait to see what happens.
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