Daily Wrap-up - The Dow Jones Industrial Average Fails to Hold Early Gain

The day ends with a last minute selloff. At its highs, the Dow Jones Industrial Average (DJIA) was up 156 points but closed with a gain of just 30 points. The S&P 500 (SPX) and Nasdaq Composite (COMP) were flat while the Russell 2000 (RUT) lost more than 1%.

The Semiconductor HOLDRS (SMH), AMEX Pharmaceutical Index (DRG), and Natural Gas Index (XNG) led while the Dow Jones Transport Index (.TRAN), Amex Biotech Index (BTK), and iShares Treasury Bond (TLT) lagged.

My midday post noted my apprehension about looking too closely at the intraday action ahead of the Fed. Of course, that is a fairly vague statement so there is nothing particularly prescient about it.

As the intraday chart below shows, there was the typical post-event waggle and shake followed by a brief tick to new highs for the day. The bulk of the gain then evaporated in the last 30 minutes.

On a brighter note, the daily charts of the S&P 500 and Nasdaq Composite have what looks to be the beginning stages of a bounce. Though, the charts would look stronger without the close at the low end of the bar.

The Nasdaq Composite might get a boost by Cisco Systems Inc (CSCO). Earlier this morning I mentioned I was watching that stock from the bellwether perspective. The company hit the wires with better-than-expected numbers and the initial reaction has the stock up. Of course, initial reactions aren't always the full story so I will let the dust settle and pick up there in the morning. Have a nice evening.

Chart Courtesy of Thomson Reuters

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Charts Courtesy of Thomson Reuters

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