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The market opened lower as retail sales plunged 1.2% in September! The selling picked up momentum as the day went. Oil prices continued to drop. Crude closed below $75/barrel. Commodity-related sectors were particularly weak: POT -21.58%; X -17.72; RTP -20.48%; DVN -16.69%; HES -19.16%; APA -18.24%.
Yesterday, in my evening post, I said, "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." Indeed, the worse-than-expected economic news this morning seemed to have prompted the market to test the recent low much sooner.
In our Trading Room today, I commented:
HappyTrading
VIX
does not look done yet. got too far above its upper bb on the 15-minute chart. I think it's just resting a bit and will likely to back up. I'd say buying calls should wait until the last 1/2 hour; even that could be risky. Maybe tomorrow morning...
HappyTrading VIX
check out the daily chart. That's incredible. looks like it might test 70 again. geez! intraday charts haven't show tops yet.
In the last 15 minutes, the Dow fell over 200 points before coming back a little for the close. VIX jumped from 64 to close above 69, nearly 70! The Dow closed down 733.08 points; SPX lost 90.17 points; Nasdaq fell 150.68 points!
Most sectors were lower. GLD (gold) managed a +1.35% gain. XLE (energy), XME (metals and mining), and OIH (oil services) all lost double-digit percentage points. XLF (financials) fell 10.85%. FXI (Chinese ADRs) dropped 14.85%.
SPX
SPX lost 90.17 points to close at 907.84, just above the 900 level.
Nasdaq
Nasdaq fell 150.68 points to close at 1628.33. The MACD turned lower.
As we can see from the charts, both SPX and Nasdaq are bascially testing that support from last week, where the market bounced off on Monday. The MACDs on the 2 market indices turned down again! In one day, VIX went from 55 to almost 70! The downward momentum will likely continue tomorrow, at least in the morning. Lots of earnings coming in tomorrow. including: C, COF, MER, PNC, ZION, GOOG, IBM, SPWRA, NUE, BTU, With VIX still at record highs, it will undoubtedly be another crazy day!
Good night and HappyTrading! ™
