Off the Charts
The market gapped down this morning, extending losses from Friday's session. Stock futures had already pared most of the losses from Sunday night, when S&P 500 futures were down as much as 20 handles. During the session, stocks filled the overnight gap, grinding higher throughout the trading day. The S&P and the Nasdaq squeezed out small gains while the Dow closed down 0.23%. It was a fairly lackluster bounce in the indices after they logged the biggest loss of the year last week.
On Thursday, the market was feeling weaker, as the 1392 support level was probed to the downside. There were also faulty signals in the market as the Dow was leading, while market leader Apple (AAPL) was unable to sustain a bounce and economic data were mixed. Friday's weak jobs number was the nail in the coffin, which sent the market cascading lower. The S&P lost support of the 50-day moving average and is now back to the April 10 and April 23 low of 1357. Triple-bottoms are not typically given much validity, as they don't usually hold. This time around, it does not seem as if 1357 will hold. With a close below 1357, 1340-1320 will be a support zone to test a buy back....897 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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