Friday, September 30, 2011
The major indexes spent the entire session today in negative territory and saw the selling pick up during the last hour of trading.
Like in yesterday's session the Nasdaq Composite performed the worst finishing down 2.6% along with Semiconductor stocks down 3.4%.
The DJIA and SP 500 did not perform much better down 2.2% and 2.5%, respectively.
Seasonality can sometimes play a role with why there is weakness in technology stocks around this time of year. However, often what then happens is technology shares perform better in the fourth quarter. Only time will tell if this is going to happen this year.
SP 500 support/resistance levels moved lower to 1,130 from 1,154 and 1,150 from 1,165.
Same on the Nasdaq Composite with support moving to 2,381 from 2,470 and resistance to 2,456 from 2,483.
Breadth was extremely negative with between at least three to four stocks declining for every one that advanced on the NYSE and Nasdaq exchanges.
The SP 500 and Nasdaq Composite moved further below their moving averages. The SP 500 struggled at its 21 day moving average and the Nasdaq Composite found resistance at both its 21 and 50 day moving averages this week.
The trend of gold trading inverse to the stock market might have changed this week as the SP 500 fell 0.4% and the Nasdaq Composite declined 2.7% while gold declined 2.4%.
Whatever the next move is for gold areas to watch on the gold ETF (symbol: GLD) are the $145 area on the downside and the $168-$172 area on the upside.
What was interesting this week with investors clearly selling almost every asset class bonds (symbol: TLT) were flat, materials (symbol: XLB) down 3%, consumer discretionary (symbol: XLY) down 2.4%, technology (symbol: XLK) down 1.7% financials (symbol: XLF) led to upside with a 1.3% gain.
The stock market direction is BEARISH based on my watch list of stocks and has been active 2 trading sessions.
http://btdmarketsummary.blogspot.com/
