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RealTime IT News

Intel Warns

Intel capped a market sell-off on Thursday with a warning after the close.

The ISDEX http://www.wsrn.com/apps/ISDEX/ fell 3 to 113, and the Nasdaq dropped 40 to 1554. The S&P 500 lost 20 to 1029, and the Dow fell 172 to 9624. Volume rose to 1.61 billion shares on the NYSE, but declined to 1.58 billion on the Nasdaq. Decliners led 21 to 10 on the NYSE, and 24 to 9 on the Nasdaq.

After the close, Intel guided down everything: earnings, revenue, even gross margins. The stock plunged 10% after hours from its 4 p.m. close.

During the day, EMC rose after reaffirming guidance.

National Semi climbed 1.4% after beating estimates.

Comverse slipped after beating but guiding lower, and Altera also traded lower despite reaffirming guidance.

Riverstone plunged 21% on a warning, and Symantec fell 8% on a downgrade.

Photon Dynamics gained 3% on a Lehman upgrade.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.

Even before Intel warned, the market had a major support breach: The S&P 500 (first chart) closed below the important 1030 level. 1015-1018 is next support, but the next strong support looks like 995, the 78% retracement level of the September lows and the intersection of two trendlines. 1030-1033 is first resistance, and then 1049-1054. The Nasdaq (second chart) should easily breach 1548 support tomorrow. The critical 1507-1528 level is next, and then 1490 and 1400-1450. Resistance is 1560 and 1575-1580. The Dow (third chart) has critical support at 9480-9590. Below that, 9250 and 9000 are next supports. The good news is that there were signs of fear today, with a closing put-call ratio of 1.03, but the next few days may be rough. Another closing TRIN reading above 2.0 tomorrow would give another Arms buy signal (with a low sometime in the next two weeks), but the last one was good for only a three-week bounce. Hopefully other sentiment indicators will show greater bearish sentiment this time around and set up a better bounce.

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