Today was practically a replay of yesterday for the major indices. Volume did increase today and I think a good portion of that increase is due to all the action around Apple Computer Inc. and its iPhone announcement. It had a slight influence on trading in RIMM and PALM today:
I’ve included charts of RIMM and AAPL below along with the usual index charts…
Sellers came out in force today to squash the ‘Saddam rally’. In classic sell-the-news fashion, the market opened on its highs of the day and never looked back. What’s worse is that the market closed on its lows and made bearish engulfing patterns in the indices and many individual stocks. The NASDAQ continues to show poor relative strength versus the S&P 500 and Dow. It wasn’t even able to take out its December high on today’s euphoric gap-up opening — and it closed under its 50-day moving average again. It’s also closing in on the trendline that began in May.
Looking at it another way, the NASDAQ is only 5 points above where …
We just got a much better than expected ISM Services report ( 65.1 vs. 58.0 consensus), but the market is selling off pretty hard (so far) on that number. If you didn’t believe the character of this market has changed you have to believe it now. Either the good news is all priced in or people are worried about interest rates… or both.
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