The market rallied on Monday, with SPX testing 1255 and closing above 1250. Today, the opposite happened. The market opened lower and continued to sink lower until the close. Last night, NFLX fell sharply after reporting losing more subscribers than previously forecasted. Today, NFLX fell even more and traded as low as $74.25. As I mentioned in last night's article, NFLX could continue to slide into the $50s.
Gold and silver jumped today as unclarity in Europe further worried global markets. GLD was up +2.84%, as gold surged back above $1700. SLV popped +5.05% with silver trading over $33. Gold and silver miners were up as well: GOLD +5.07%, ABX +1.99%, AEM +1.23%, SLW +3.1%, PAAS +2.3%.
FSLR slumped more than 25% after the company announced that its CEO was to depart immediately.
After the market, AMZN took a big falling after reporting a sharp decline in earnings. AMZN shares slumped nearly 13%, in addition to the 4.4% loss in the regular session. BRCM also gave a weak quarterly report and its shares dropped 5.25%. PNRA reported better-than-expected third-quarter profit, sending its shares up almost +10%. FFIV reported a strong quarter and gave a solid forecast; its shares were up +7.7%.
The Dow was down 207 points; SPX fell 25.14 points; Nasdaq dropped 61.02 points:
GLD (gold) and SLV (silver) popped +2.84% and +5.05%, respectively. GDX (gold miners) added +2.53%. FDN (internet) fell 3.41%. XME (metals and mining) dropped 3.82%. XLE (energy) slid +2.09%.
SPX fell 25.14 points to close at 1229.05. Its MACD flattened.
Nasdaq dropped 61.02 points to close at 2638.42. It closed just above its 10-day MA. The MACD was flat.
The market looked as if it was going to break out yesterday. But, with a sharp U-turn today, it is right back into the trading range. Still, the market has been rising higher for 3 weeks, a quick pullback could be seen as "healthy". The market seems to be waiting for further clarity from Europe. Besides earning reports that drive individual stocks, the broader market is still treading waters. We're trading lightly and holding lots of cash, until the market breaks out of this trading range.
Good night and HappyTrading! ™