The bears made a clean sweep on Wednesday as all three of the major indexes suffered losses. This is normally the most “bullish” week of April as it is typically a good month for stocks and Tech showed some strength by making a brief appearance into positive territory. The bulls are holding a nice lead for the week but yet-to-come headlines will play a role if they overtake resistance of fall back to support.
The Dow fell 82 points, or 0.6%, to close at 13,032. The blue-chips touched a low of 13,027 late in the session and went out near its low. International Business Machines (IBM, $200.13, down $7.32) accounted for 55 points while Johnson & Johnson (JNJ, $63.26, down $0.96) shaved 7 points off the index.
The S&P 500 slipped 5 points, or 0.4%, to finish at 1,385. The index stayed in a tight range for much of the session as the low came in at 1,383 while the peak was 1,390 which was Tuesday’s close. The bears will try to push 1,375 while a break above 1,400 would be bullish today.
The Nasdaq dropped 11 points, or 0.4%, to settle at 3,031. Tech turned positive shortly after the open but retreated before making another attempt late in the day. The index kissed a high of 3,045 but never really had the strength to challenge 3,050.
Futures were trading higher throughout the night and were showing a strong open as Dow futures were up nearly triple-digits at 7am (EST). However, futures started weakening ahead of the jobless claims numbers which disappointed.
Dow futures were up about 40 points ahead of the 8:30am news but are slipping as we type. Dow futures are currently higher by 8 points to 12,965 while S&P futures are up less than a half-point to 1,378. Nasdaq 100 futures are up 8 points to 2,702.
We have added a few charts this morning inside our Members Area which shows more of the technical picture for the rest of the week. We have also added a few charts for the new trades we released on Tuesday. Although the bulls are winning the week, the charts are showing some bearish patterns forming.