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It was another wild day for the markets! Last night, I thought,
"I think the best scenario for the market tomorrow is actually to open "lower"; let off some steam. Then, resume back up in the afternoon or late morning. If the market opens up, people will probably start to lock in profits, which would invite the bears back in. We need to see the market being able to string together a few wins."
The market did open lower. Then, after lunch, the market started to go back up; and, even turned green... for a few minutes. In the last 45 minutes, the market turned lower and sold into the close. Perhaps people were nervous ahead of earning reports from AAPL and YHOO.
The agriculture stocks were among the weakest today: POT -10.03%; CF -8.27%; MON-4.55%; MOS -5.65%. Airlines have been very strong, as oil prices contine to fall. Some of these stocks have "doubled" in the past 2 weeks: UAUA +8.92%; DAL +3.72%; NWA +5.25%
The Dow was down 231.77 points; SPX lost 30.35 points; Nasdaq fell 73.35 points:
Techs were weak with INX2 (Internet) down 5.6%. Commodity-related sectors were mostly lower: GDX (gold miners) -9.51%; USO (oil) -4.9%; XLE (energy) -4.54%; XME (metals and mining) -3.15%; MOO (agriculture) -4.36%. UNG (natural gas) managed to bounce up +1.4%. FXI (Chinese ADRs) tumbled 9.74%.
SPX
SPX dropped 30.35 points to close at 955.05. It closed just above the 10-day MA. The MACD went up.
Nasdaq
Nasdaq fell 73.35 points to close at 1696.68. It closed just below its 10-day MA. The MACD went higher.
The market tried to rally back up in the afternoon, but, the sentiment was still a bit too nervous for the gains to hold. However, Nasdaq's MACD has just established a bullish crossover; SPX's MACD is also touching the MACD signal. After the market, YHOO reported earnings that matched estimates. YHOO shares jumped more than +7% on the report. AAPL's quarterly profit easily beat the Street's expectations. AAPL shares flew up +14% in AH trading. VIX closed flat today, just above 53. Its daily chart is showing a bearish crossover on the MACD. VIX closed just above its 20-day MA. If the AH gains from AAPL and YHOO can provide a good springboard for the market tomorrow, VIX could fall below its 20-day MA tomorrow. Its nearest support level should be between 45 and 47.5.
Good night and HappyTrading! ™
