Stocks fluctuated between gains and losses Tuesday, as comments from Ben Bernanke in a speech hit the market mid day but stocks recovered nicely in the afternoon to finish nearly unchanged. The S&P 500 gained 0.07% and NASDAQ 0.02%. Bernanke mentioned the Fed doesn’t have tools at its disposal to deal with the severity of the fiscal cliff which seemed to temporarily shock some traders.
Let’s take a look at some longer term charts today:
The S&P 500 has bounced off this 61.8% Fibonacci level and after Monday’s large move had a solid consolidation day today. Going straight up would be a negative as it would create a very shaky foundation for any upside progress so days like today are necessary. In the bigger picture 2012 has been the year of two ascending channels, and two corrections.
The NASDAQ has been more of a sloppy mess and has a lot more warts in its technical outlook, having fallen much more than the 61.8% retrace.
Oil continues to showcase a relatively weak technical outlook, while gold looks solid if not spectacular.
Hewlett-Packard (HPQ) was in the news today as the company announced they found some misleading information from a recent acquisition, Autonomy. This led to HPQ taking a $5B charge for the acquisition (and $8.8B charge overall). Ouch.
Best Buy (BBY) was also crushed to the tune of 13% as continued pressure from Amazon hurt the business. You can see these are two businesses in long term decline from their charts.