By Harry Boxer, The Technical Trader
The markets had an early rally out of gate but failed at key overhead resistance , and that was about it. They had a 3-wave decline and sharp one until late morning, tried to bounce around mid-day, failed at resistance, and then sold off in a steady, downward choppy fashion into the close.
Net on the day the Dow closed down nearly 90 points at 7465.95, tagging 7447.55 right around the lows of November, but the close was the lowest in six and a half years! The S&P 500 also suffered, dropping from a morning high of 797 down to 777, closing just a couple points above its low, at 778.84, down 9.48. The Nasdaq 100 gave back 34 points off its high, closing down nearly 21 today at 1167.89. The Philadelphia Semiconductor Index (SOXX) had a very negative session, down 10.77 to 196.09, a more than 5 percent decline.
Advance-declines were negative by nearly 3 to 1 on New York, and by about 2 to 1 on Nasdaq. Up/down volume was about 3 to 1 negative on New York on total volume of 1.45 billion. Nasdaq traded just under 2 billion and had an almost 5 to 1 negative volume ratio.
TheTechTrader.com board was generally lower. Apple (AAPL) was down 3.73 to 90.64. Financials suffered greatly, with Hartford Financial Services (HIG) down 2.51 to 7.73 on 41.8 million shares, a real crusher there. WFC was down 1.04 to 12.01, and BAC down 64 cents to to 3.93. C lost 40 cents to 2.51, a new 18-year low. JPM lost 91 cents.
Shippers also had a negative session. Excel Maritime (EXM) fell 1.35 to 4.45, and DryShips (DRYS) was down 18 cents to 3.59, holding up relatively well.
On the plus side, the ultra shorts had a fantastic session. The UltraShort Real Estate ETF (SRS) closed up 6.45 to 82.66, but that was about 10 1/2 off its low on the day. The Direxion Large Cap Bear 3X Shares (BGZ) snapped back 6 1/2 off its low and closed up 2.53. The Direxion Financial Bear 3x Shares (FAZ) at 70.20 was up 8.10 today, 14 points off its low.
Stepping back and reviewing the hourly chart patterns, additional downside progress was made today, and short-term support was broken. We'll be watching key support at the 1135-40 zone the Nasdaq 100. The November lows are fast approaching down around the 740 area on the S&P 500, but that's about 38 points from where it closed today.
Good trading!
Harry
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