We are seeing a very rare thing - in fact something not seen at all in 2013. A 5 day losing streak. While not common in the past, it certainly was not extinct like it has been in 2013... recall in the first half of the year the DJIA did not fall 3 days in a row - QE markets work in very different ways. While the pulback has not been severe, about 2% in most indexes, it has been a sort of series of paper cuts. The S&P 500 fell 0.27% and the NASDAQ 0.19%. There were 2 economic reports on the day to note:
Durable goods orders for August edged up 0.1% from July, despite expectations of a 0.6% drop. Sales of new homes rebounded by more than forecast in August, rising 7.9%, while economists expected a 6.6% increase.
The NASDAQ continues to look better than the S&P 500 - almost daily now. The former is still holding its 10 day moving average and is over August highs, while neither is true for the S&P 500.
I'd like to also point out the Russell 2000 which focuses on smaller companies - it is acting well which is usually a good sign.
The NYSE McClellan Oscillator has worked off that extreme overbought condition AND remains above zero which is positive.
Ten year Treasury yields continue to fall off as it becomes clear Bernanke won't be cutting QE anytime soon.
Walmart had an interesting day as Bloomberg reported that unsold merchandise was piling up, leading the big-box retailer to cut its orders from suppliers. A spokesperson for the retailer later called the report "misleading."
JCPenney (JCP ) was crushed as Goldman Sachs said it expects sales at the troubled department store chain to improve more slowly than expected.
On the positive side, Chinese travel site Ctrip.com (CTRP) had a very nice day after not doing much the past few weeks.
A name we highlighted a few times in the past, NPS Pharm (NPSP) also bucked the trend today.