from MyHappyTrading.com by HappyTrading! ™ Sign up for FREE membership!
Yesterday’s heroes are today’s villains! Financials finally saw substantail profit-taking today. PRU was down 24.72%!! STI gave back 10.72%. MS has been weak lately, trading back down to $21. GS lost 5.65% and closed under $100. Commodity-related sectors were strong today. Oil traded higher, $51/barrel, as the dollar kept going lower. Buyers were inspired to pick up battered energy and mining stocks. Gold continued higher, touching $960/ounce.
In my article last night, I said, “I think we could see some residual buying tomorrow morning, but, things are getting very toppy...” The market popped higher at the open but struggled to keep the altitude. Energy and mining stocks kept the market indices up in the morning. But, selling pressure gradually mounted and the market closed at its day low. The Dow lost 85.78 points; SPX fell 10.31 points; Nasdaq slid 7.74 points:
Techs were down slightly. XLF (financials) lost 7.93%. However, the commodity-related sectors showed drastic contrast. UNG (natural gas) jumped +13.33% and USO (oil) added +2.53%. XME (metals and mining) bounced +8.71% while GDX (gold miners) gained +6.81%. GLD (gold) and SLV (silver) were both higher. FXI (Chinese ADRs) lost 1.77%.
SPX
SPX fell 10.31 points to close at 784.04. Its 10-day MA went above the 20-day MA. The MACD was higher.
SPX and Nasdaq are showing very similar information, so, we’ll only look at the SPX chart tonight. Both indices have fallen back from their respective resistance levels (SPX 800 and Nadsaq 1500). The 10-day MA has crossed above the 20-day MA. This is a good development. However, since the market has gone up so much, so fast, some profit-taking is in order. Tomorrow is Friday, and the last trading day for March options. I think we’ll see more profit-taking for most of the day tomorrow and then some tight-ranged fluctuations in the afternoon to close out the March options.
Good night and HappyTrading! ™
Did you like this article?
Submitted By 
's
