Stocks fell Wednesday despite better than expected revenue guidance from Dell.
The Nasdaq lost 26 to 1187, the S&P 500 fell 20 to 827, and the Dow dropped 183 to 7755. Volume declined to 1.69 billion shares on the NYSE, but rose to 1.77 billion on the Nasdaq. Decliners led 21 to 10 on the NYSE, and 21 to 11 on the Nasdaq. Downside volume was 82% on the NYSE, and 73% on the Nasdaq.
After the close, Check Point
rose despite lowering revenue guidance. AMD
fell on a warning.
During the day, Dell
rose 2.8% after raising estimates.
dipped below $10, but recovered to close at 10.05, down 8%. Analysts continue to cut earnings estimates on the company.
lost 7% after negotiations with Northwest Airlines broke down.
rose 5% on an upgrade.
tacked on 3% on reports of a possible merger with Disney.
fell 7% on a warning.
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.
The Dow (first chart below) seems to be in a wave 4 consolidation still before the final wave 5 down. 8012-8051 is resistance (an overthrow to 8100 is possible), and support is 7665, 7600, 7532, 7460 and 7380. Unless 8012 is taken out, the likely target for the wave 5 low remains 6950-7150. If we get 90% downside days on the way down, we could have the makings for a major bottom. One bearish development for the Dow is the failed breakout of the September 11 downtrend line. If it can’t get back above 7800 and then 7925, the final leg down may have already begun. The Nasdaq (second chart) faces resistance at 1200, and 1160 is support. The S&P (third chart) has resistance at 840 and 857, and support at 815 and 775-800. One positive for the bullish case is that the Investors Intelligence survey of investment advisors is back to even (bulls versus bears). Let’s hope bears outnumber bulls next week – and stay there for a while.
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