A stock market rally on the anniversary of the September 11 terrorist attacks was undone by a Federal Reserve survey that showed the economy weakening.
The Nasdaq lost 4 to 1315, more than 30 points off its high, the S&P 500 finished unchanged at 909, and the Dow slipped 21 to 8581, 145 points off its high. Volume in the shortened trading day fell to 850 million shares on the NYSE, and 1.08 billion on the Nasdaq. Advancers led 17 to 14 on the NYSE, and by a few issues on the Nasdaq.
Comverse Technology fell 4% despite better than expected results.
Xilinx rose 3% after reaffirming guidance.
Genesis Microchip gained 9% on rumors of strong flat panel display sales at Dell
.
Sun and IBM
were pressured by a Hitachi warning, and strong early gains by Microsoft
also faded.
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.
One very ugly day in the market today, and a down day tomorrow would just about cement a top here. The Dow, Nasdaq and S&P (first three charts below) all formed bearish gravestone dojis or shooting star candlesticks, a rare hat trick. The Dow doesn’t form the pattern very often, and usually only at tops of some significance, like late May 2002, late August 2001, and February 2001. The Dow faces major resistance at 8785, and has support at 8450, 8300 and 8200. The Nasdaq has major resistance at 1347, and has support at 1300 and 1250-1263. The S&P faces resistance at 920 and 925-930, and 900 and 875 are support. And finally, there’s not much to say about the banks here (fourth chart): they look like they’re headed for at least 670.
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