Stocks give up gains and close at session lows for the 2nd consecutive day

Technical Analysis

The major indices gave up solid gains on the day and are closing at the lows for the second consecutive day. The NASDAQ index and Russell 2000 were the worst performers as investors rushed for the exits..

  • The Dow industrial average gave up a 462 point gain and is closing down -313 points.
  • The S&P index was up 69.63 points or +1.54% at the highs. It is closing down -50 points
  • NASDAQ index was up 301 points at the highs. It is closing down 186 points
  • Russell 2000 was up 42 points at the highs. It is closing down -38 points
  • Netflix after close announced higher EPS and revenues in line with expectations but subscriber base was lower and announced lower revenues /earnings going forward. The stock is down over 10% after the close.

Technically:

  • The Dow industrial average is closing below its 200 day moving average for only the second time since August 2020
  • The S&P index is closing below its 100 day moving average of 4576.31. Its 200 day moving averages at 4427.70 and is the next downside target.
  • The NASDAQ index is closing below its 200 day moving average for the third day in a row. And is also closing below a swing low area and 50% retracement between 14154 and 14181 (see chart below)

NASDAQ

NASDAQ index closes below its 200 day MA for the third day

Higher yields cannot be blamed for the second consecutive day as well. Yesterday yields fell. Today, yields are mixed with the two year up 2.4 basis point but the longer end of the yield curve is lower.

US yields

US yields are mixed

A look at the final numbers are showing:

  • Dow industrial average -313.28 points or -0.89% at 34715.38
  • S&P -50.03 points or -1.10% at 4483.74
  • NASDAQ index -186.22 points or -1.3% at 14154.03
  • Russell 2000-30.74 points or -1.8% at 2024.03

From the all time highs:

  • The Russell 2000 index is now down -17.68% from its all-time high
  • The Nasdaq index is down -12.70%.
  • The S&P is down -7.07%
  • The Dow is down -6.18%

Articles You May Like

Snap plunges more than 20% after CEO warns company will miss revenue and earnings estimates, slow hiring
Palm eases as India allows duty-free imports of competing oils
So much for the potential double bottom in the S&P 500, but there’s another level
Supertrend Forex Trading Strategy | Shocking Results…
Bath & Body Works shares fall as retailer cuts profit outlook due to inflation