Mid-Day Market Flash
At mid-day, the broader indices are lower, following a jobs report which Wall
Street is interpreting bearishly. Non-farm payrolls grew faster than expected
and 207,000 jobs were added. While some analysts were saying that this is a
strong indication that the economic recovery is sustainable, the market sold off
due to concerns that a strong economy would prompt the Fed to lift interest
rates.
The declines, so far, are modest…
The S&P
(
SPX |
Quote |
Chart |
News |
PowerRating) is down 9.47 for a -0.77% loss and the Nasdaq
(
COMP |
Quote |
Chart |
News |
PowerRating)
is down 13.49 for a -0.62% loss. Both indices are trading near their lows of the
day.
Stock action that is weighing down the overall markets include: KO
(
KO |
Quote |
Chart |
News |
PowerRating),
down 0.59, PFE
(
PFE |
Quote |
Chart |
News |
PowerRating) down and 23, HD
(
HD |
Quote |
Chart |
News |
PowerRating) down .47. Helping to
limit the losses is MRK
(
MRK |
Quote |
Chart |
News |
PowerRating) which been rising since the opening bell. MRK
is up 0.56.
Here are 4 charts from today’s action that have noteworthy technical
setups. Keep in mind that these are not recommendations. They are observations
from today’s action which you may want to incorporate into your own research.
Goodyear Tire
(
GT |
Quote |
Chart |
News |
PowerRating) is breaking out of a six-day consolidation into new
high territory. Astute traders will not enter here, but rather, wait for a
potential pullback. Watch for the previous resistance level near 17.75 to become
a new support level.
Gilead Sciences
(
GILD |
Quote |
Chart |
News |
PowerRating) had three consecutive down days and may close
lower today. Some traders would view GILD as approaching a potential oversold
condition. Chart-oriented traders will also tend to see a trendline connect the
three major lows made in June and July. With these factors combined, you might
look for a potential bounce (or at least consolidation) near the current levels
over the next few days.
Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) is pulling back to a short-term support level
near 31.25. Because the stock has been in a strong uptrend for the past six
weeks, many swing traders will watch for this pullback to find support here.
National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating) is following through into a four-day
decline. But look at how the stock is bouncing off its intraday lows which occur
at a previous level of support that was established in mid-July. Watch today’s
action in NSM to see whether this level holds. If the market turns positive and
the semiconductor group recovers, NSM may be a participant to the upside.
Good luck in your trading,
Eddie Kwong
Editor-in-Chief
TradingMarkets.com