The morning opened with a promising start but 40 minutes in a sell order of size sent the SPX down from 4314 to just below 4290. This drop of around 25 points took the wind out of the rally and by 11:00 investors were trying to stage another rally attempt but buying volumes are low.
There are though some stocks that investors are placing their funds in. These include Merck Stock (MRK), Expedia Stock (EXPE), Ulta Beauty Stock (ULTA), Walt Disney Stock (DIS), Microsoft Stock (MSFT), United Airlines Holdings Stock (UAL) and others. In other words, buyers are being very selective and taking profits quickly.
Use The Bounces
Remember in the bounces take profits until it is determined the selling is ending.
Morning Stats
Overall the outlook is negative but bulls are picking away this morning especially when stocks broke to 4290. There is still underlying strength in the indexes.
New York – SPX
On low volume the SPX has 84 new lows and 52 new highs. 54% of all volume to 11:00 is positive and 48% of all stocks are advancing.
The outlook for New York remains flat to negative
NASDAQ
There are 117 new lows and only 31 new highs. This points to further weakness in the index. 60% of all volume is being traded to the downside as investors are still getting out of tech names. Advancers are just 40% while decliners are 48%. The relatively flat advance decline line is in contrast to the down volume. That indicates many investors are selling the same names.
The outlook for the NASDAQ remains negative.
TSX Composite Index
Volume is flat with 45% to the upside and 51% to the downside. 55% of all stocks are decliner however while just 28% are advancing. There are 26 new lows and only 16 new highs. The index is relatively flat but the outlook for Canadian Stock Market is negative at present.
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