On the Downside
Halted trading in Emulex
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PowerRating) has sent this market lower, although hope remains for a recovery later on today. According to news reports, EMLX was halted on a false-report/hoax on its earnings. The expectation is that when EMLX resumes, the tech sector will get a big boost — and the overall market will be aided as well.
Meanwhile, in S&Ps we saw a double top this morning. Early on we set a high of 1517.10, and then sold off. A retest around 1516.80 failed, and now the market is at 1511.50. We’re above the intraday low of 1510.20, but below our pivotal area of 1512.50.
Similar action in NASDAQ. We made a high early on of 4002, but sellers stepped in above that psychologically important 4000 level. We traded off sharply to an intra-day low of 3827, then came off those lows somewhat at 3947.
Until EMLX resumes trading, we expect choppy or horizontal trading.