Stocks were mixed again Tuesday as the S&P 500 fell for the 4th straight session. What looked like a promising intraday reversal petered out in the last hour as stocks sold off quite sharply erasing decent gains. The S&P 500 fell 0.26% while the NASDAQ gained 0.08%. Financials continue to be an issue as the Wall Street Journal reported that JPMorgan has offered to pay $3 billion to the Justice Department to settle a number of pending probes, including a case relating to the sale of residential mortgage-backed securities from 2005 to 2007. This weighed on the sector. In economic news:
The Conference Board's consumer-confidence index for September declined to 79.7 from a revised reading of 81.8 in August, versus expectations of 79.8. The S&P/Case-Shiller 20-city home-price index for July rose 12.4% from year-earlier levels, in line with expectations of a 12.5% increase.
Nothing horrible here in the indexes; that said the NASDAQ is the better looked one and with the S&P 500 we want to see a recapture of those early August highs. The NASDAQ continues to bounce of its 10 day moving average nicely.
Here is a chart of the financial sector - it continues to be a wart.
Oil is also a wart; while there are conditions for this pullback - namely less international conflict over Syria, you usually want to see oil rallying with the market as a sign of global economic strength.
Let's look at some individual charts utilizing Marketsmith.
We'll start with JPMorgan which is acting quite poorly:
Facebook (GB) roared higher yet again, this time to the $50 area but right now is extremely overbought so some caution is warranted. It also closed near its lows which is not a near term positive.
A report in the South China Morning Post said the Chinese government plans to lift an Internet access ban within the Shanghai free-trade zone, which could clear citizens to visit social media sites like Facebook. Also, Citigroup upgraded Facebook to "buy" from "neutral," saying factors that drove sharper growth in the second quarter appeared sustainable.
Other interesting names are (who else) Tesla... old school name Yahoo.... energy company Continental Resources (CLR)... and Angie's list which until late last week had a very poor technical outlook. But in the past few sessions it has surged as this is yet another fast growing internet company.