Markets took a well deserved breather Tuesday. Only problem was volume perked up, and the leading index fell the hardest Tuesday by 3/4’s of a percent. The S&P 500 lost its 1700 level. Its crucial that it gets back above it soon. Lingering below a large round handle can become worrisome quickly. There were concerning moves in the energy and transport sectors, as both are crucial to a vibrant economy, and stock market. The IYT fell back below its double bottom handle trigger of 118.06 it took out on 8/1. The move did come on tepid volume, soothing the blow somewhat. The second largest component KSU has looked vulnerable, as it lost ground for the 11th time in the last 12 sessions. Its having issues with its 50 day SMA as well. The XLE recorded a bearish outside day, but the damage was negligible. The two biggest components XOM CVX, making up more than 30% of the ETF, are having their own issues. XOM fell for the tenth consecutive session while, CVX was down for the sixth time in the last 8 days. TDW, a energy favorite of mine, fell hard today slicing its 50 day SMA in the process. IBM, with the largest impact on the DOW, because of the indexes price weighting to its components, fell after a downgrade. Indeed, a blue day for Big Blue.
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