Market Recap – A Whipsaw Day

Tonight’s to-the-point recap courtesy of IBD, “Stocks started firm but reversed lower Thursday, as weak U.S. economic data and mixed news from two European debt auctions more than offset a spate of robust earnings results.”

The real story of today is the wild price swings that started around 10 AM. Several times the market dropped and took off in response to news. Also note volume was heavy throughout the day, yet ANOTHER distribution day. Based on the price action the last two weeks this market looks poised to fall lower. If the 50 MA fails we could easily see another 2% on the downside before fresh support.

Heading into tomorrow the one positive note is that atleast Microsoft (MSFT) posted impressive earnings. The stock is up 2.9% after hours trading at $31.90.

No recap tomorrow as it is Friday so stay frosty (sharp) out there and I will see you after the weekend. Have a good one!

Here is a good look at the S&P 500 from my MarketSmith account which we can see a significant long term support trendline in place. This trendline did not appear correctly on stockcharts.com but MarketSmith had it correct. Click to view the chart full size.

Click to Enlarge

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