Friends
Yesterday the stock market was able to recover from an over 100 point loss. Today we weren’t so lucky. Fueled by more anemic earnings reports and anxiety about the pending fiscal cliff, stocks were down from the opening bell to the closing bell. There were a few feeble attempts to recover some losses, but sellers pretty much overwhelmed buyers all day long. The S&P 500 has definitely violated its upward trend lines and support levels are going to be vital as we move forward.
For the day, the Dow Jones Industrial Average was down a whopping 243 points to close at 13,102. The S&P 500 was down 20 points to finish the day at 1413. Gold was down $19 to trade at $1707 per ounce, while oil was down $2.12to trade at $86.53 per barrel WTI.
Earnings disappointments continue to be the story, with technology, industrials and materials companies seemingly suffering the most. Again, we have worried that this earnings season would be difficult, but would it provide a buying opportunity for underinvested bulls or will it be break in the markets that the bears have been hoping for. The FOMC began their 2 day meeting today, but I would not expect anything new to come from the Fed at this point, with the election just 2 weeks away.
We’ll see if the bulls can right the ship, but they need the Dow to stay above 13,000 and the S&P to stay about 1395. Let’s see if this week gets any better.
Have a nice evening everyone.
