A bearish mood clouded the Street today, knocking the
Dow Jones Industrial Average (DJI)
down more than 190 points at its intraday low. "Today was all about
the European Central Bank (ECB) and the fact that they really
didn't say or do anything new. You could argue that the market
dropped because the ECB didn't take any immediate action, but I'm
in the 'sell the news' camp," said Schaeffer's Senior Technical
Strategist Ryan Detrick. "ECB President Mario Draghi said last week
that they would do whatever it takes to save the euro, which
sparked a big three-day bounce. Remember, that's still on the table
and will probably happen. Just not today."
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
Although the
Dow Jones Industrial Average (DJI - 12,878.88)
closed a second straight day below 13,000, the index managed to
bounce from its session low of 12,778.90 and end with a 92.2-point,
or 0.7%, deficit. All but four blue chips found a perch in the red,
as Alcoa, Inc. (
AA
) led the parade of underperformers with a roughly 3% pullback. On
the other hand, Caterpillar Inc. (
CAT
) and Wal-Mart Stores, Inc. (
WMT
) paced the winning minority with gains of 0.6% apiece.
The
S&P 500 Index (SPX - 1,365.00)
and
Nasdaq Composite (COMP - 2,909.77)
also parked in negative territory on the day. The SPX chewed off
10.1 points, or 0.7%, while the COMP peeled back 10.4 points, or
0.4%.
After touching an intraday peak of 19.25, the
CBOE Market Volatility Index (VIX - 17.57)
fell 7.3% and closed at its session low. The VIX dipped back below
18 for the first time in four days.
Today's highlight
: "For starters, we finally had a big move on better volume,"
remarked Detrick. "At the same time, one big concern is that
small-caps have been lagging big-caps
for quite some time now. This doesn't mean the market will collapse
tomorrow, but it sure is something to be aware of and hopefully it
will reverse soon."
Plus, see
what bonds king Bill Gross said
to make Ryan smile.
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Oil futures took a hit today, after speculators were let down by
the European Central Bank's (ECB) decision to provide no immediate
relief to the debt-strapped euro zone. As the dollar strengthened,
September-dated crude gave up $1.78, or 2%, to end at $87.13 a
barrel.
Likewise, gold futures tumbled for a third consecutive session,
as the ECB voted to leave interest rates unchanged, and ECB
President Mario Draghi's pledge to save the euro fell flat.
Yesterday's
remarks by the Federal Reserve
also continued to weigh on the commodity. By the close, gold for
December delivery tripped $16.60, or 1%, to land at $1,590.70 an
ounce. Today marked the lowest daily settlement for the precious
metal in over a week.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 12,878.88)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,365.00)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 2,909.77)
- 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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