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Market Dives On Weak Data

|Includes: AAPL, AVGO, BIDU, FSLR, GOOG, NWSA, Qualcomm Inc. (QCOM)

The market opened lower this morning and continued to slide until the close.  A few new economic data that came out today were worse than expected, including manufacturing and jobless claims reports.  VIX jumped to close above 28.  Last Friday, in our Trading Room, I commented:

September 25, 2009 7:12 AM
market
this is a market in consolidation mode where things bounce around. no hurry to trade. what I'd like to see is VIX breaking above 25 and test 28, SPX and Nasdaq at least testing their 20-day MAs...

Well, during the first part of the week, the market bounced around and held above the 20-day MA.  But, today, the new economic brought some fear back onto the market, and, the market closed below the 30-day MA.  Techs were especially weak.  QCOM lost 5.07% while BRCM slumped 6.24%.  Both AAPL and GOOG were down, -1.74% and -2.42%, respectively.  BIDU lost $19, or 4.87%.

The Dow finished down by 203 points; SPX dropped 27.23 points; Nasdaq stumbled 64.94 points:

Most sectors were down substantially.  SOXX (semiconductors) led the techs down, -4.84%.  Commodity sectors were all weak:  GDX (gold miners) -4.92%, XME (metals and mining) -4.6%, OIH (oil services) -3.3%, and XLE (energy) -3.12%.  Interestingly, USO (oil) closed slightly in the green.  FXI (Chinese ADRs) fell 3.1%.

SPX

SPX fell 27.23 points to close at 1029.85.  It closed below its 10-day MA.  The MACD curved down.

Nasdaq

Nasdaq tumbled 64.94 points to close at 2057.48.  It also closed just below its 30-day MA.  The MACD was lower.

The market finally took the fall that the sidelined money has been looking for.  With the unemployment rate and nonfarm payroll reports due out tomorrow, buyers were no where to be found today.  VIX closed at 28.27 and could get a quick jump to 30 tomorrow.  There should be some buyers coming in; but, given that it will be Friday, the buying will probably not be substantial.  So, I think we'll see a volatile finish to the week.  On a positive note, FSLR will replace WYE in the S&P 500 Index and NWSA will be included in the S&P 100 Index.  In the after-hours trading, FSLR shares jumped +6.33% while NWSA gained +5.37%, both erasing their respective losses during the regular session.

Good night and HappyTrading! ™