The techs and chips are under heavy pressure today, down from the open and a crescendo as the session progresses. We have watched for a rebound but nothing is forthcoming and indeed NASDAQ just hit a new session low with another leg lower the past 25 minutes. Big names are leading with NDX down over 2%.
NYSE indices fared quite well but then they too have been hit with selling as SP500 is now negative and the other indices are up modestly after sporting solid early gains.
We are waiting to see if the 20 day and 50 day MA's spark a rebound in the afternoon session. If so, we will see how solid it is and whether patterns can be salvaged. If not, then we end up closing a lot of tech related positions.
Upside plays tended to gap higher and are coming back some; may get an entry on those. We will see if downside NASDAQ stock plays rebound in the afternoon for a better entry.
Retail remains strong as do industrials such as MMM. Biotechs are trying to catch a bid along with other medical stocks. Financials still have their bid.
Definite rotation, and thus a bounce in the afternoon in the down sectors may not produce a lasting effect. Of course, they have to bounce, something not shown yet.
SP500 -5.74, -0.24%
NASDAQ -115.53, -1.66%
DJ30 37.13, 0.17%
SP400 0.20%
RUTX 0.37%
SOX -5.24%
NASDAQ 100 -2.16%
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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