The market gapped up today on better-than-expected economic data from China. But, financials dragged on the market a bit. Plus, as I mentioned last week, the market technicals remain toppy. SPX popped above 1300, but, could not hold it for the close. After the first hour of trading, things started to slide lower.
C was down more than 8% on weak earnings, as its quarterly profit fell 11%. On the other hand, WFC provided a better operating picture and beat its revenue estimate; its shares, though, was only fractionally higher. GS will report tomorrow morning and it closed down 1.29%. Techs were a bit stronger: IBM +0.47%; AAPL +1.16%; AMZN +1.82%; PCLN +3.27%
The Dow was up +60.01 points; SPX added +4.58 points; Nasdaq gained +17.41 points:
GLD (gold) and SLV (silver) bounced. However, GDX (gold miners) was down 1.61%. USO (oil) also bounced, up +1.65%. XLF (financials) was down 0.76%. XLE (energy) and OIH (oil services) were marginally higher.
SPX added +4.58 points to close at 1293.67. Its daily MAs glided up. MACD was still flat.
Nasdaq gained +17.41 points to close at 2728.08. Its daily MAs and MACD were higher.
Although the market was up, VIX went higher as well. This always raises a warning flag for me. This market has been trying to break out, but, has not been able. It has stubbornly kept above the support, but, has not been able to break SPX 1300. Technicals are toppy and may need to let off some steam before going higher. As mentioned earlier, GS will report tomorrow morning. If it misses, or gives a weak outlook, it could provided an incentive for the market to take some quick profits. We're holding mostly cash for now. Let's see how the market reacts to GS earnings in the morning.
Good night and HappyTrading! ™