"Although today may have seemed like a typical profit-taking day, there was continued apprehension following last week's news of the first corporate bond default in China, as well as the continued drop in copper," noted Schaeffer's Senior Equity Analyst Joe Bell, CMT. "There appear to be a decent number of market participants looking to take some positions off the table." After closing Monday with a minor loss, the Dow Jones Industrial Average (DJI) moved lower again today, and other major indexes followed suit.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 16,351.25) spent some time in positive territory this morning, but sellers took control by midday, sending the blue-chip index decidedly into the red. By the close, the Dow was off 67.4 points, or 0.4%. Ten of the Dow's 30 components finished higher on the day, with McDonald's Corporation (NYSE:MCD) leading the pack, up 3.8%. Pacing the 20 decliners was Goldman Sachs Group Inc (NYSE:GS), which declined 2.1%.
The S&P 500 Index (SPX - 1,867.63) followed a similar path on the day, and closed near its intraday low, off 9.5 points, or 0.5%. The Nasdaq Composite (COMP - 4,307.19) shed 27.3 points, or 0.6%, to finish the day south of its 10-day moving average.
The CBOE Volatility Index (VIX - 14.80) muscled higher amid the weakness in stocks. By the closing bell, the "fear barometer" had gained 0.6 point, or 4.2%.
A Trader's Take:
"We continue to see uncertainty surrounding Ukraine, although markets seem to be taking the focus off the situation for the time being," added Bell. "After a strong rally during the past few weeks, today's action should not have been a big surprise. In a logical rotation, buyers were putting a little more money into gold and bonds today as well."
5 Items on Our Radar Today:
For a look at today's options movers and commodities activity, head to page 2.
The Case for Big Moves in IWM and QQQ
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