Another down day today, with the Dow dropping 172.65 points, or 1.29% to close at 13,167.20, and the Nasdaq Composite dropping 61.28 points, or 2.32% to close at 2574.46. The bigger concern here is the Nasdaq's drop, which we look at a bit closer on the charts below. The breadth of the market was negative as there were three stocks declining for every one advancing.
On the Interest Rate side, the 10-year Treasury yield closed at 4.193%, a small drop from Friday's close. If the stock market continues to be weak, we'll probably see that rate drop as money flows to the safety of treasuries.
On the Interest Rate side, the 10-year Treasury yield closed at 4.193%, a small drop from Friday's close. If the stock market continues to be weak, we'll probably see that rate drop as money flows to the safety of treasuries.
Nasdaq Composite
As we stated above, the Nasdaq is of most concern at this point. The chart to the left shows its three closest support levels. These levels are where some buying should come in to stabilize it. As you can see today's close, and low for the day, was right on the first support level, at 2574. The fact that the Composite closed at the low is not a great sign. The next support level is denoted by the number 2 on the chart. This is at 2,531, which was the peak on February 22. If both of these support levels are taken out, the third support level shown is around 2427. These support levels are shown on the chart below as well.
So the stock market is still in a funk, and there really aren't any signs of it making any great change of direction just yet, but of course that can change in an instant. But until it does, we'll remain content to wait patiently for the opportunity to present itself.
Until tomorrow....
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