Techs Back In The Driver’s Seat
Once again, tech stocks are setting the tone for this market, dragging S&P futures lower. S&Ps were trading at mid-day at 1472.20, minus 12.30. The low print of the session thus far is 1466.
Reflecting the weakness in the tech sector, the SOX Index was trading at 1024.60, down 79.70 or 7.1%. LSI Logic was trading at 33 1/4, down 15 3/4.
At the current S&P price, we are below the 50- and 100-day moving averages, which come in at 1478.20 and 1480.70 respectively.
Earlier, we saw heavy volume around 1475-1477 area, with thousands trading. Dealers were involved in two-way trades, and locals were major sellers. Most covered under 1475 on sell stops triggered from PRU and Bstearns.
Looking ahead, the 1473.30 to 1474 area is a former support zone, now turned resistance. The market needs to trade above this area to have a more positive tone.
With SOX under heavy selling pressure, NASDAQ futures were at 3822, minus 63.