Schaeffer's Trading Floor Blog
The weeks starts with steady selling pressure weighing on the tape. A last-minute bout of mild buying bounced the Dow Jones Industrial Average (DJIA) off its lows but the average still finished with a loss of 125 points. Meanwhile, the S&P 500 (SPX), Nasdaq Composite (COMP), and Russell 2000 (RUT) all lost more than 2%.
The midday check of the action showed wide-spread selling and there was no reprieve from that in the afternoon. The iShares Treasury Bond (TLT) rallied in the second half of the session to secure its spot as the only advancer. Outside of that, the losses began at 1% and many groups lost more than 3%. The Amex Gold Bugs Index (HUI) lost 6% as it closed at its lowest level in a month. The PowerShares Clean Energy ETF (PBW), Oil Service HOLDRS (OIH), US Oil Fund (USO), and SPDR Homebuilders (XHB) were also relatively weak.
Earlier I discussed the waning momentum in the broad market indices. A look to the charts below show the Dow Jones Industrial Average, S&P 500, Nasdaq Composite, and Russell 2000 have all violated their simple trendlines. The question now is whether we get the buying demand that historically has been seen during expiration weeks. And that is where I will pick up in the morning. Have a nice evening.
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