Stocks closed Tuesday with losses, putting together a rare 3 day losing streak; only the second since September. The S&P 500 fell 0.32% and the NASDAQ 0.2%. So while we are in day 3 of a pullback, this is very mild. There was a break in economic news for the day but it gets hot and heavy the rest of the week.
The S&P 500 closed below its 10 day moving average for the second time early October - that shows you how strong this trend has been. The only other time was the outside reversal day marked in yellow; that was immediately followed by a sharp rally. The NASDAQ continues to pull back from the top of the year long channel it has been in; it hit the top of it Friday.
It is worth noting the big move in oil today...
Tesla Motors (TSLA) surged on an upgrade after Morgan Stanley named it a "top pick", maintaining a price target of $153 per share. Tesla said on Monday that Germany's vehicle regulatory agency said it planned "no further measures" after reviewing fires in Tesla cars in the United States and Mexico.
Meanwhile both Ford and GM fell sharply on very high volume, despite reporting excellent November sales figures. Ford warned that its North American production will slip 1.8% in the first quarter of 2014 amid rising inventories. Automakers entered their year end sales push last month with their biggest supply of cars and trucks in eight years.
Apple (AAPL) continues its recent strong move as UBS upgraded the iPhone maker's stock to "buy."
Meanwhile, Sears Holdings (SHLD) was one of the biggest losers on the day as holiday sales at Sears and Kmart were not very impressive.