Technology shares outperformed the marketplace today, which is why the Nasdaq Composite ran away from the DJIA, and the S&P 500. That said, it’s hard to imagine a day coming after a severe sell-off that satisfies neither the bulls, nor the bears. No follow through, no rebound. No response to weak guidance from NKE (outside of that specific security, that was -7%). No response to a terrorist attack in London.
Walking on eggshells. Perhaps, after getting roughed up yesterday, investors (and algos) will wait until hard news on health care reform breaks before deciding which way to take the market’s next leg. There was a brief attempt at a rally in response to the Rep. Nunes’ press conference, but that was short lived.
Winners & Losers
Outside of the tech space, Treasuries, and thus most of the bond proxies found support… as did Gold. you could not exactly say that traders took off the safety trade. Telecom was an outlier, selling off badly, while the banks seemed to stabilize if not find a buy side. The US dollar remained weakfish, as did oil, illustrating just how bad the environment is right now for Crude. That said Crude remains well above the crucial spot just north of $47 a barrel, despite another large inventory build.
SPX: Our 2337 level at the bottom of the chart was precise, as was our 2345 resistance that held into mid-morning. we were, however sloppy at the top. I gave you nothing between 2345, and 2358. A stone wall formed at 2352, a level that has held since 1pm on Tuesday, so there is clearly something there.
RUT: The 1349 level at the top was nearly perfect. and our 1342 level did truly work well for most of the day. Honestly, just missed 1335 support until it was real.