The midday check of the action showed we had a relatively quiet day on our hands. However, that changed as we approached the closing bell. Midway through the final hour, the Dow Jones Industrial Average (DJIA) was sporting a loss of 330 points. We did see a small bounce in the final ticks but the Dow still closed with a loss of more than 200 points.
The sector graph shows most groups lost ground with commodity corner hardest hit. The Natural Gas Index (XNG) lost over 10% while the Oil Service HOLDRS (OIH) lost over 9%. The US Oil Fund (USO), PowerShares Clean Energy ETF (PBW), and Oil & Gas Index (XOI) each lost more than 5%. The Amex Networking Index (NWX) was also relatively weak. The SPDR Homebuilders (XHB), S&P Retail Index (RLX), and iShares Treasury Bond (TLT) ended as the only gainers.
Given what I said earlier about quiet action being expected, the late-day selloff isn't what I was expecting. However, a glance at the daily charts shows it does little to change the overall technical picture. The S&P 500 (SPX), Nasdaq Composite (COMP), and Russell 2000 (RUT) are still in the middle of testing congestion. The monthly employment report, due out at 8:30 AM tomorrow, always has the potential to be a market mover so that will be key in determining what happens next. And that is where I will pick in the morning. Have a nice evning...
Chart Courtesy of Thomson Financial
| Index |
Index Value |
Point Change |
Percent Change |
| S&P 500 (SPX) |
845.2 |
-25.5 points |
-2.93 percent |
| Dow Jones Industrial Average (DJIA) |
8376.2 |
-215.4 points |
-2.51 percent |
| Nasdaq Composite (COMP) |
1445.6 |
-46.8 points |
-3.14 percent |
| Russell 2000 (RUT) |
439.5 |
-14.2 points |
-3.14 percent |
| CBOE Market Volatility Index (VIX) |
63.64 |
2.92 points |
4.8 percent |
Charts Courtesy of Thomson Financial
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