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Market Slumps On Renewed Economic Worries

|Includes: AAPL, ATI, CLF, CREE, Cisco Systems, Inc. (CSCO), FCX, GS, RTI, VECO, WLT, X

As further economic data showed slowing in the global economy, the US stock market took a sharp fall today.  Miners led the market lower:  WLT -5.21%, CLF -5.03%, FCX -4.33%, X -5.19%, ATI -7.58%, RTI -6.87%.  Market leaders such as GS and AAPL also took big falls.  GS dropped 3.02%, closing below $150.  AAPL lost 3.55%, ending barely above $250.

Last night, CREE disappointed investors with its forward guidance.  CREE was down 13.27%.  VECO also suffered a similar loss, down 13.33%.  Less than 3 weeks ago, VECO jumped to almost $48 after its earnings report.  It closed just above $32 today.

The Dow was down 265.42 points; SPX tumbled 31.59 points; Nasdaq fell 68.54 points:

XME (metals and mining) slumped 4.81%.  SOXX (semiconductors) led the techs down, losing 4.26%.  USO (oil) fell 3.15% while OIH (oil services) lost 3.43%.  XLF (financials) dropped 3.53%.  PBW (clean energy) shed 5.47%.  FXI (Chinese ADRs) was down 2.78%.


SPX tumbled 31.59 points to close at 1089.47, below 1090.  It closed right at its 30-day MA.  The MACD went down.


Nasdaq fell 68.54 points to close at 2208.63.  It closed below its daily MAs.  The MACD curved lower.

This market is still moving around like a whirlwind within a trading range.  After testing and re-testing the upper resistance for the past 2 weeks, the market is now showing signs of possible breakdown!  In 2 days, the market went from testing the breakout resistance to now testing the breakdown support.  VIX jumped +13.5% to close above 25.  SPX closed below 1090 and could easily test that 1080 again. 

After the market, CSCO shares slumped 7.92% as its revenue disappointed investors.  This could exert addition selling pressure on the market tomorrow.  We'll also get the lastest jobless claims and import/export data.  Today's drop is so sharp that it demonstrated a quick shift in the market sentiment, to the down side.  Even if the economic data is favorable tomorrow, it is unlikely that we'll see too many buyers.

We hopped on some downside plays early in the morning today and had already locked in intraday profits as high as +75%!  The closed trades will be discussed in the weekly wrap report.

Good night and HappyTrading! ™

Disclosure: no positions