What was looking like a promising reversal to begin the day ended with little progress as the S&P 500 gained 0.17% and the NASDAQ 0.32%. Considering the depths of the damage this week, these were merely rounding errors. After some selling to start the day, stocks reversed back up and through the 200 day moving average on the S&P 500 and looked strong through the noon hour. Then President Obama made a speech on the economy and fiscal cliff at 1 PM and his comments drove down the market by roughly 12 S&P points taking out almost all the day’s momentum. The rest of the day was very volatile but very little progress had been made in the end. Essentially the action helped work off a bit of the very oversold conditions we had observed yesterday.
The S&P 500 actually finished back below its 200 day moving average after spending much of the day above it. The 50% retracement of the entire move from June to September was almost hit in the morning (close enough for government work) and that is where buyers seemed to step in, but as said above their momentum was stymied at 1 PM.
The NASDAQ did very little – Apple (AAPL) and Google (GOOG) had nice days so their thunder hid some of the weak breadth.
You can see that despite positive indexes, breadth was actually negative.
It was one of the roughest weeks of the year, and it didn’t end with any form of bang, just a whimper. In stock specific news, social coupon company Groupon (GRPN) continued its descent into oblivion as it reported yet another poor quarter - investors were not pleased.
- Groupon Inc. (GRPN), the largest daily-deal website, plunged to a record low after reporting third-quarter revenue that missed estimates as sales of coupons overseas declined from the previous period. Last November, Groupon sold shares at $20 apiece in an initial public offering, valuing the discounter at about $12.7 billion. Groupon, which has lost 86 percent of its value since the IPO, has struggled to grow abroad, where it makes nearly half its revenue.