Yesterday, stocks pushed higher with SPX closing just above 1530. Today, "minutes from the U.S. Federal Reserve’s most recent meeting suggested the central bank may slow or stop buying bonds sooner than expected." With about 2 hours left in trading, big sell orders piled in! As mentioned in my Market Forecast this weekend, financials and energies led the market’s decline. FAS, the financial ETF dropped 4%! APC dropped 4.47%; DVN tumbled 6.6%; APA gave up 2.35%.
Higher flyers were swooping down. AAPL fell more than $11; it looks like it’ll test $440 again soon. GOOG came down $14.39 after making a new all-time high at $808.97 early this morning. NFLX set a new 52-week high this morning at $197.62, but, ended down 4.75%.
After the market, WLT missed its earnings expectation and fell 5.88% on top of the 8% drop during the regular session. SNPS delivered a strong quarter, sending its shares up +4.92%. PAY plunged 32.55% after badly missing its earnings estimates. TSLA reported wider-than-expected quarterly loss, pushing its shares down 6%.
The Dow was down 108.13 points; SPX fell 18.99 points; Nasdaq dropped 49.19 points.
SPX fell 18.99 points to close at 1511.95. It closed below its 10-day MA. The MACD was down.
Nasdaq fell 49.19 points to close at 3164.41. It closed below its 20-day MA. The MACD sank.
Today’s fall was pretty sharp. I’d expect a volatile day tomorrow. Some dip-buyers have got to be itching to come in. On the other hand, Fed’s minutes have prompted investors to lock in some profits. We could see SPX 1500 tested this week. But, still, I think this pullback will be shallow again. This market needed to come down a bit. It was getting hard to find things to buy on the upside.
Here’s a trade idea for tomorrow. Watch BBRY; it looks to be on its way to test $12 again.
Good night and HappyTrading! ™