Stocks plunged Thursday on a much weaker than expected manufacturing report.
The ISDEX http://www.wsrn.com/apps/ISDEX/ lost 3 to 91, and the Nasdaq fell 48 to 1280. The S&P 500 lost 26 to 884, and the Dow plunged 229 to 8506. Volume declined to 1.67 billion shares on the NYSE, and 1.55 billion on the Nasdaq. Decliners led 19 to 12 on the NYSE, and 21 to 12 on the Nasdaq.
After the close, National Semi warned, Tekelec
beat estimates, and Synaptics
matched estimates.
During the day, Adobe plunged 30% on a warning.
Cisco fell 8% on rumors of executive departures and accounting problems. The company reports earnings next Tuesday.
Qualcomm fell 7% on a downgrade.
priceline rose 8% despite warning, and Computer Sciences
slipped 3% after guiding lower.
Brocade fell 11% after canceling a conference presentation.
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.
About the only good news today is that volume was light, but that could change tomorrow if the unemployment report at 8:30 a.m. is negative. The Dow and S&P (first two charts below) are clinging to support; any substantial down tomorrow would look like a top is in. In the dailies (third and fourth charts), 8200 and 844 look like the levels to hold to avoid a complete retest of the lows. To the upside, 8897-8927 and 950 (fifth chart) are very tough resistance. The Nasdaq (sixth chart) has support at 1262 and resistance at 1320. A gap down tomorrow would create a bearish ‘island reversal’ pattern (overlapping gaps in opposite directions), setting up a complete retest of the 1192 low. The VIX (seventh chart) is showing some nice signs of bearish sentiment, but equity option traders will have to start buying more puts than calls to make any bottom stick.
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