Wall Street Sells on the News; Dow Drops 92 Points

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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...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

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

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Click the links for coverage on today's notable annual highs and notable annual lows .

SCHAEFFER'S MARKET POSTURE

At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Options

Referenced Stocks: AA , CAT , GPS , LNKD , WMT

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