Market participants were expecting a sunny day following some benign earnings reports after the close yesterday from AAPL YHOO and JNPR. A decent start turned into a nasty close, classic bear market behavior. The S&P 500 lost 1.3% and the Nasdaq fell .5%. The percentage losses may not have seemed that much but the way in which the day unfolded was, especially after the Nasdaq’s 1.9% drop Wednesday. Both AAPL and JNPR managed to finish the session up but well off highs, and YHOO crumbled. Prior to last weeks 5.3% gain the stock was on a 4 week losing streak although it was trading tautly above the round 50 handle with the 5 weeks ending 12/5-1/2 CLOSING just above it. No surprise then that the stock was stopped right at that level Wednesday which happened to align with its 50 day SMA as well. Energy was torpedoed Wednesday as the overall group fell close to 4%. New names that perhaps may be under followed, something we like to try and do here at ChartSmarter, hit not only 52 week lows but all time lows were AR CJES FET. There does not seem to be anywhere to hide in the group and highlights the reasons why it is tough to pick a bottom, and better to stick to winning sectors. The XLE OIH and XOP continue to make lower lows and are 26, 46 and 44% respectively off their recent 52 week highs.
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