Stocks finished off their worst week since June with losses of 0.3% in the S&P 500 and 0.17% in the NASDAQ. Stocks were choppy in the early going as earnings reports by banks JPMorgan (JPM) and Wells Fargo (WFC) did not impress but got a brief bump in the morning on a consumer confidence survey that came in better than expected. However, those gains quickly were lost and stocks fell to session lows from which they bounced around most of the resion of the day. The 50 day moving average provided support for the S&P 500 as well as the low end of the ascending channel built since June. That said, it seemed like a listless day where neither bulls nor bears were ready to make any aggressive moves.
Let's take a longer term view of the charts of the S&P 500 and NASDAQ today. We can see 2012 continues to be the year of two major ascending channels, interrupted by a poor April-May. The S&P 500 continues to sit slightly above the April highs of 1422.
NASDAQ has had a more choppy year as it has been led around by its general, Apple. It is well below its April highs.
Both JPMorgan (JPM) and Wells Fargo (WFC) fell after their earnings reports although the latter had a much larger fall and more damage to it's technicals. JPM actually had a good report but a lot of their beat was due to accounting changes to the reserve requirements, and considering the run in the stock it was prone to some profit taking. WFC actually was light on revenue.
One market to keep an eye on is China's - which stood out from the rest of the world by acting well and potentially bottoming after months of weakness. The next step for their market would be to surpass September highs.
Next week begins the hot and heavy portion of earnings season and Bespoke Invest has a list of the key earning reports to keep an eye on.
Enjoy the weekend and see you Monday.