The market opened strong, continuing from yesterday’s rally. But, it started to fade in late morning, as profit-taking started to kick in (other people/articles might give other reasons). Within the last hour of trading, the profit-taking gained momentum and the market closed in the red. Crude spiked up over $110/barrel today. The Dollar fell further. Gold and silver rose again.
The Dow was down 46.57 points; SPX slid 11.88 points; Nasdaq fell 11.89 points.
The market was looked mixed at the close:
SOX (semiconductors) fell 1.54%, but, BTK (biotechs) kept things slightly green. USO (oil) made a new all-time high, topping $87, while OIH (oil services) dropped 1.58%. GLD (gold) and SLV (silver) both rallied, +1.06% and +2.31% respectively. XME (metals and mining), however, was down 1.56%. XLF (financials) retraced 1.67% from yesterday’s gain. FXI (Chinese ADRs) fell 4.32%.
SPX
SPX lost 11.88 points to close at 1308.77. It closed below the 10-day MA. The MACD flattened.
Nasdaq
Nasdaq dropped 11.89 points to close at 2243.87. It closed at the 10-day MA. Its MACD went up slightly.
Today’s profit-taking was expected. The important thing is how the market does for the rest of the week and leading up to next Tuesday’s Fed meeting. To solidify the bottom, we’ll need to see the market rally above the resistance levels mentioned yesterday (SPX 1340; Nasdaq 2300), which would likely get the market above the daily MAs.
BIDU was strong today, but couldn’t break $280, as I mentioned yesterday that we could see some resistance between $275-$280. GLD (gold) and SLV (silver) look like they are ready to go up again. We may finally see $1000 gold on this run. FXY, FXB, and FXE (mentioned in this weekend’s Market Forecast) all recorded solid gains. FXE broke out to a new all-time high at $155.77. FXY is also in all-time high territory. These currency ETFs will likely go higher before the Fed’s meeting next week, in anticipation of another rate cut.
Good night and HappyTrading! ™
