We head into the final two hours of the session with a selloff on our hands. The broad market indices are all off at least 1% with the Dow Jones Industrial Average (DJIA) down 200 points. A look to the intraday chart of the S&P 500 (SPX) shows selling pressure was steady throughout the first half of the session. The most recent action has been a sideways drift but the SPX is currently flirting with its lows of the day.
The sector view is dominated by the SPDR Homebuilders (XHB), which is down 9%. We also have weakness in the Broker/Dealer Index (XBD), PowerShares Clean Energy ETF (PBW), Regional Bank HOLDRS (RKH), Cyclical Index (CYC), Dow Jones Transport Index (.TRAN), and Semiconductor HOLDRS (SMH). As it stands now, the iShares Treasury Bond (TLT) is the strongest area on my list.
With today's selling pressure, the S&P 500 (SPX) is mired in the resistance zone I have been discussing. Yesterday initially showed a push above that zone but a lackluster close left the index near the upper end. A drop from this point would leave us with a rejection at resistance so it will interesting to see if the bulls are able to step up the plate here.
Chart Courtesy of Thomson Financial
Chart Courtesy of Thomson Financial
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