Markets went on a wild roller coaster ride to put it mildly on Wednesday as markets overcame deficits of nearly 3% in the mid afternoon hours. The Nasdaq actually went green momentarily in the last hour before fading slightly to close in the red. The tech heavy Nasdaq closed 100 handles off its intraday lows, and the Dow closed almost 300 of its. The Nasdaq did hit the 10% “correction” threshold on its lows for the day, and volume was very robust. Energy was the big winer on the day as the group overall rose 3/4ths of 1%. Big winners in the sector included EOG, PXD both of which rose in the 4-5% neighborhood and also recorded classic bullish engulfing patterns. Volume was very energetic as it has been now for a better part of the last week, and when you see volume like this it can be associated with bottoms, and todays action in EOG looked very much like a selling climax. Homebuilders rejoiced Wednesday too, and these two aforementioned groups have been big laggards, so perhaps the bears can lay their hat that the powerful gains today came from frail groups. Something I took note of today that the bulls can rely on was the “fizz” that left some of the strong beverage names. DPS fell beneath its reliable 50 day SMA in strong trade today falling 3%. PEP did the same thing. Perhaps DPS will look to move back and test the 60.60 flat base trigger it took out after last reporting earnings on 7/24.
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