Stocks closed lower today, in a trading session that probably could have been much worse. Financials were perhaps the weakest sector, with particular focus on the banks and consumer finance names. The Materials sector was also among the day’s weakest. Only one of eleven sectors headed north for the day, and that was Energy. This despite slightly lower prices for Crude, and a stronger US Dollar. Remember that energy had a pretty solid week last week as well.
Small caps, and Transports were both hit with the ugly stick today. At least in the case of the Transports, this was due to a widespread beat-down levied upon the airlines after Delta (DAL) lowered expected Q1 operating margins at the Raymond James Institutional Investor Conference. Delta also lowered passenger revenue per available seat mile.
US treasuries sold off small, as yields for the ten year remained below 2.5% all day. Gold ended the day virtually unchanged.
Back to the broader indices. There were a few moments this morning where traders wondered if the market was going to crack hard. I gave it a thought at the time myself. You know what got in the way? That SPX 2367 level. Like an impenetrable stone wall at the bottom of the chart. Equity markets rallied hard off of the level, and seemed to run right through that next 2375 level, only to then end up finding steadfast support at that spot from 1pm on into the closing bell.
Both of those levels were available for free in the Market Recon note at 7am this morning only at thestreet.com . Our Russell 2000 levels were just as sharp today as were the levels for the S&P 500. Just change the numbers to 1378, and 1384.