The market started out weak, with FDX delivering disappointing earnings and forward guidance. After the oil inventories came out, crude oil price started to rise and added more pressure on the market. The financials continued to be weak, although GS was able to add +1.86%.
The metals and mining sector was hot, led by coal stocks! CNX, PCX, ANR, BTU, and MEE all recorded new all-time highs! CNX jumped more than $8 to close at $117.34, up +7.34%! These helped XME to break out above $93 with a +2.54% gain. Elsewhere, OSTK jumped +8.33% with no apparent news. The agriculture stocks squeezed higher this morning and added on to their recent gains to new all-time highs! But, like I mentioned yesterday, “Some of these high flyers may need to do a little breathing soon and let off some steam,…” They did so after the morning pop, although most of them stayed quite strong still and came back up, even as the market got weaker.
The rest of the market was not so hot, especially not the techs. The Dow was down 131.24 points; SPX lost 13.12 points; Nasdaq stumbled 28.02 points:
SOX (semiconductors) led the techs down with a 2.32% loss. GLD (gold) went up +1.18%, while SLV (silver) added +1.7%. USO (oil) gained +2.03% as UNG (natural gas) hopped +3.06%. OIH (oil services) tacked on +0.71%. MOO (agriculture) slid 0.76%. FXI (Chinese ADRs) advanced +1.22%.
SPX
SPX lost 13.12 points to close at 1337.81. It closed below the 1340 support. Its MACD slid.
Nasdaq
Nasdaq tumbled 28.02 points to close at 2429.71. Its daily MAs started a new bearish formation. The MACD went lower.
This market is in a very critical condition. VIX is threatening to go higher again. Nasdaq just started a new bearish formation, and, SPX closed below 1340. Nasdaq’s nearest support is at 2400, while SPX sees a soft support at 1320, with 1300 being the stronger support. There are still pockets of strength on the market, among which are: metals and mining (XME), oil services (OIH), and agriculture (MOO). With the financials (XLF) still struggling to find a bottom, I’m still very cautious about this market.
Good night and HappyTrading! ™
