The market got slammed on a stack of disappointing economical data, supports were taken out all over the place
Interesting is the fact that the semiconductor market broke out yesterday, yet none of the semiconductor stocks showed up in our scans as appealing buys. Today this market suffered a hard breakout reversal and a good number of stocks in that sector made lower lows today
Another interesting point to be made about today’s volatility is that it revealed much about a market that has not been revealing much lately. Namely, it exposed which sectors and which stocks were the weakest and which have some underlying strength. Gold stocks showed a lot of strength today even though the XAU index didn’t do much other than tread water. Most of the sectors out there could go either way at this point and are still keeping their cards to themselves, but a few individual stocks showed some propensity toward market independence. This was revealed by strength and independence in the face of market
indices falling like a stone early on today
As for what today’s trading means for the longer term outlook of the market; probably not much
Considering that only immediate support levels were broken on the market indices and not major supports, it would be wise to not bet on a trend either way yet. Essentially, unless tomorrow ends up providing a follow through on today’s selling (not likely considering the pros will probably take off early to enjoy a long holiday weekend), today was probably just another day that puts the market back in the trading range it has been in