It's been a few very volatile days: a sharp drop on Monday; a vigorous bounce on Tuesday; then, a quick fall back to Monday's low in the morning today! For now, the sentiment has shifted. Last week's strong dip-buying seems not to have as much enthusiasm this week.
AAPL led the tech's decline, falling 5.5%. CRUS, which gets the majority of its business from AAPL, stumbled 15.69% after giving weak forecast. BAC fell almost 5% after giving disappointing quarterly results. GS continued its slide, falling another 2.43%. After market today, EBAY went down 2.62% after forecasting lower-than-expected numbers for next quarter. On the other hand, SNDK raised its revenue forecast for the whole year and saw its shares rise +1.31%.
The Dow was down 138.19 points; SPX dropped 22.56 points; Nasdaq fell 59.96 points.
SPX fell 22.56 points to close at 1552.01. It closed below its daily MAs. The MACD turned down.
Nasdaq dropped 59.96 points to close at 3204.67, just above its support at 3200. The daily MAs flattened and the MACD went lower.
Even though SPX and Nasdaq both fell below their daily MAs, the Dow still kept its altitude. However, I do think we'll see some more selling. Earnings, so far, have come in lower than expectations. Financials have lost their momentum on the upside. Below 1550, SPX has some support at 1540. A stronger support lies at 1520. Amazingly, biotechs still seem to draw buyers in. BIIB, AMGN, CELG, REGN, and GILD are still near their recent all-time highs. Materials have fallen far, and should consolidate a bit on the downside. There are some big earnings tomorrow, including GOOG, MSFT, and IBM. We'll wait and see how the market reacts to these earnings.
Good night and HappyTrading! ™