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Dow Falters, Snaps Weekly Winning Streak
8/9/2013 4:22:00 PM
By: Schaeffer's Investment Research
"It was another typical August day," quipped Schaeffer's Senior
Technical Strategist Ryan Detrick, CMT. "Volume was extremely
light, and there was little news on the day. Still, the bulls once
again came in late in the session and pushed the markets well off
the intraday lows." Nevertheless, the
Dow Jones Industrial Average (DJI)
finished the day -- and week -- on a down note.
The Dow Jones Industrial Average (DJI - 15,425.51) sank all the way to a session low of 15,346.65 just before noon today, but managed to recover some of its losses to finish 72.8 points, or 0.5%, lower. On a weekly basis, the blue-chip barometer shed 1.5% -- its first weekly decline in seven. The Dow's five advancers were led by Alcoa's (AA) gain of 3.9%, while Walt Disney (DIS) paced the 25 decliners with a loss of 1.6%.
Similarly, the S&P 500 Index (SPX - 1,691.42) narrowed its morning losses, but still ended the session with a decline of 6.1 points, or 0.4% -- falling back below its 10-day moving average. Meanwhile, the Nasdaq Composite (COMP - 3,660.11) shaved off 9 points, or 0.3%, on the day. For the week, the indexes were off 1.1% and 0.8%, respectively.
The CBOE Market Volatility Index (VIX - 13.41) climbed to an intraday high of 13.66, and finished the session 0.7 point, or 5.3%, higher -- its first close above 13 since July 31. On the week, the "fear gauge" advanced 11.9%.
A Trader's Take :
"Small- and mid-caps continued to lead," said Detrick. "Although we are in a consolidation period in the overall broader markets, it is always nice to see the smaller and more aggressive names leading. Just today we were discussing how this correction could very well come in the form of time, not price. In other words, after a big rally, maybe some sideways movement to catch our breath is warranted. That could be what we are looking at now."
3 Things to Know About Today's Market :
5 Stocks We Were Watching Today :
For a look at today's options movers and commodities activity, head to page 2.
Crude oil futures closed higher today, thanks to a positive industrial production report out of China, as well as a stronger forecast for global demand from the International Energy Agency. By the time the dust settled, September-dated crude added $2.57, or 2.5%, to end at $105.97 per barrel. For the week, however, crude was down 0.9%.
Meanwhile, gold futures were buoyed by the same overseas data, and subsequently notched their third daily advance in a row. The December-dated contract rose $2.30, or 0.2%, to close at $1,312.20 an ounce. On a weekly basis, the malleable metal edged up 0.1%.