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Market Updates

A turn lower into the weekend

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Just as we completed our 01:00 PM Intra-day update, the Dow Industrials (INDU) 7,711 -3.56% did break below their 21-hour SMA on the 60-minute chart interval and has made a bold move lower to test the 7,700 level.

The decline in the Dow did seem to have a negative impact on the broader market averages as the S&P 500 Index (SPX.X) 828 -3.06% and S&P 100 Index (OEX.X) 414.42 -3.28% fell in unison.

Larger cap technology stocks as depicted by the NASDAQ-100 Index (NDX.X) 864 -1% and the NASDAQ-100 Index Tracking Stock (AMEX:QQQ) $21.50 -0.5% quickly gave back earlier gains, but continue to hold above near-term support at 857 and $21.44 respectively.

Volume is brisk at both the NYSE and NASDAQ at 1.2 billion shares traded respectively. The NASDAQ Composite (COMPX) 1,204 -1.43% is holding up relatively well when compared to the NYSE Composite (NYA.X) 451 -2.86%. Traders will be monitoring the NASDAQ Composite (COMPX) at current levels to see if the 1,200 level can hold as support into the close of trading. The 1,200 level served as resistance on 09/24/02 and being a round number, may be a key "psychological" level for the MARKET to be measuring against. A close above/below could influence trading on Monday in the direction of the 1,200 level.

One would expect breadth to be negative and current statistics have decliners outnumbering advancers by a 3 to 1 margin at both exchanges.

The big board currently has 57 stocks having traded new 52-week highs versus 120 stocks at new lows, while this indicator of breadth at the NASDAQ remains weak with just 14 stocks at new highs versus 226 stocks at new lows.

This afternoon's move looks more "defensive" ahead of the weekend than it does "news driven" by anything mentioned on the newswires this afternoon.

Jeff Bailey

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