"There wasn't a major headline that sank us today, it was more
just steady selling as the session wore on after starting off
higher at the open," noted Schaeffer's Senior Technical Strategist
Ryan Detrick. "One major concern I have, though, is that Alcoa (
AA
) came out and beat the lowered expectations, yet they were still
punished. The question is: will this trend continue as we enter the
meat of earnings season?" And with that, the
Dow Jones Industrial Average (DJI)
trudged to a fourth consecutive loss.
Keep reading to see what else was on our radar today:
-
Go against the grain
: why it's a safe bet to
stay long on this bullish market
.
- Plus, the SPX is
backpedaling toward two critical levels
.
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 12,653.12)
endured a roughly 223-point swing today, reaching an intraday peak
of 12,830.29 just after the open, and falling to a session low of
12,606.91 in the last 15 minutes of trading. By the closing bell,
though, the Dow pared some of its losses and posted an 83.2-point,
or 0.7%, deficit. Twenty of the 30 blue chips tumbled, as Alcoa's (
AA
) earnings-induced drop of 4.1% paced the laggards. Kraft Foods (
KFT
) led the nine gaining components with a roughly 1% increase, while
Coca-Cola (
KO
) stayed at breakeven.
The
S&P 500 Index
(SPX - 1,341.47)
marched into the red as well today, declining 11 points, or 0.8%.
Meanwhile, the
Nasdaq Composite (COMP - 2,902.33)
sawed off 29.4 points, or 1% -- the worst performance of its fellow
benchmarks.
The
CBOE Market Volatility Index (VIX - 18.72)
turned in a second straight win today, adding 4.1%, and closing
below its session high of 19.19.
Today's highlight
: "Well, if you're bullish, there was nothing much to be up about.
But no matter how bad your day was, it was probably better than
Patriot Coal's (NYSE:PCX) day," noted Detrick. "That said, the PCX
bankruptcy news hit coal stocks hard. This is one group -- along
with financials -- that we've been bearish on for quite some
time."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
After a yesterday's rally, oil futures were snagged as the
greenback reached a two-year high against the euro on rekindled
worries about euro-zone fiscal health. Black gold was also forced
lower as Norway avoided an oil production shutdown and China's
crude oil imports fell in June. By the close, August-dated crude
spiraled $2.08, or 2.4%, to land at $83.91 a barrel.
Gold futures took a dip as well, after ticking higher in early
trading on word that the European Union offered an
economic aid package to Spain
. But this uptrend didn't last long, as the dollar strengthened and
a report of missing client funds at U.S. futures brokerage firm
PFGBest kept investors parked on the sidelines. Against this
backdrop, gold for August delivery gave up $9.30, or 0.6%, to
settle at $1,579.80 an ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 12,653.12)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,341.47)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 2,902.33)
- support at 2,400; resistance at 3,400
Click the links for coverage on today's
notable annual highs
and
notable annual lows
.
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