Markets started underwater Tuesday and never made it above the flat line, but a very mild late afternoon rally lifted them off the lows. The S&P 500 took the biggest blow down 1% not surprising given that it heavily undercut its 50 day SMA last week, while the Nasdaq closed off .7%. The energy sector was really drilled today, pun intended, as the sector taketh and giveth away. Yesterday it was the best performer and today that was just the opposite. Keep in mind it is imperative to keep an eye on how the leaders in the group are behaving and we wrote back in late June we were concerned about the tape on PXD. It fell almost 5% on 6/24 in big trade, reversing from all time highs that session, and the stock has never closed above that high made that day since. PXD declined another 5.6% Tuesday after reporting earnings after the close Monday, and notice how it was halted precisely at its 50 day SMA Monday. Energy was not the only sector making investors “cry” Tuesday as some restaurant names have been hit lately, questioning consumer spending numbers. Today BLMN did the delivering of tears as the layers were peeled off the onion today. The stock lost nearly a quarter of its value today. This comes after moves from BWLD sinking 13% on 7/30 after delivering earnings, YUM down almost 7% on 7/17 after it release, and lesser known names like CHUY off 40% from its recent 52 week highs. Indigestion anybody?
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