Nearly 2 weeks ago, we talked about the market being range bound and waiting for it to "show hand". Well, it finally did break down yesterday, printing a bearish bar. Next target will be for it to retest Nov low of 75 for S&P 500 Spyders (AMEX:SPY)
Above chart shows the VIX, which is a measure of fear gauge. It shot up yesterday and broke above the recent range. After some period of complacency, is the market suddenly awaken by the "real" reality?
The KBW Bank Index is at an all time low as well, breaking the 25 level support (see chart above). Same goes for Financial Select Sector SPDR (NYSE:XLF). During this whole crisis period, the financial sector
Only 3 sectors managed to stay positive since start of the year, and they barely made it actually. Utilities, healthcare and technology. The rest all had negative returns.
This chart above is similar to the one on top, only difference is the base line is S&P 500. Sectors like Financials, Consumer Discretionary, Industrial and Consumer Staples has since underperformed relative to S&P 500. I would like to take this chance to recommend a few excellent blog posts from Dr Brett and Trader-X. These posts are already bookmarked under MY DELICIOUS at the left hand column, but in case you missed it, here they are:
The above chart speaks for itself. I had thought the market will have a clearer direction after the Fed meeting. But it was otherwise. The S&P 500 Spyders (AMEX:SPY) shown above is confined in a triangular range. It will continue to be a directionless market until the upper/lower range is broken.
Mixed bag of earnings releases after hours:
- Cisco Systems, Inc.(NASDAQ:CSCO) is down 4.4% - Prudential Financial, Inc. (NYSE:PRU) down 1.5% - Akamai Technologies, Inc. (NASDAQ:AKAM) up about 7% - Visa Inc. (NYSE:V) up 7.9%