More terrorist threats, the possibility of war between India and Pakistan, and weaker than expected results from Home Depot led to the stock market’s second straight drubbing on Tuesday.
The ISDEX http://www.wsrn.com/apps/ISDEX/ lost 4 to 124, and the Nasdaq dropped 37 to 1664. The S&P 500 fell 12 to 1079, and the Dow lost 123 to 10,105. Volume rose to 1.18 billion shares on the NYSE, and 1.65 billion on the Nasdaq. Decliners led 20 to 11 on the NYSE, and 22 to 12 on the Nasdaq.
After the close, Sycamore
During the day, Qualcomm
rose after reiterating guidance.
continue to fall on credit and accounting concerns.
dropped on concern that the company continues to lose domain name registrations to competitors.
fell on rumors that the company may warn at its mid-quarter update on Thursday.
dropped on news that its auditor, Ernst & Young, is facing SEC charges for business deals with PeopleSoft.
gained on news of a $2 million investment from eBay
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 bearish evening star reversal pattern that formed in the Nasdaq (first chart below) on Friday and Monday has proven to be a strong one. 1680 and 1696 are now resistance, and 1640 and 1600 are support. The S&P 500 (second chart) has also sliced through what should have been strong support, and 1088-1091 is now resistance again. 1074, 1064 and 1049-1054 are support. The Dow (third and fourth charts) is also slicing through support. Next supports are 9900 and 10,000, and 10,200-10,250 is now resistance. And finally, there hasn’t been much to say about gold stocks (fifth chart) because they just keep running. The HUI is in one impressive uptrend. If you listened to our recommendations on stocks like Gold Fields and Harmony last year – and we sincerely hope you did – you’d be up more than 200% at this point. Gold looks like it could still go higher.
Special report: For a free introduction to technical chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.