SPY is sitting on the 50 day SMA

Index & Sector performance 9/23/14

The Market:

U.S. led airstrikes in Syria and weaker than expected European manufacturing data helped continued weakness in the broad markets with the Russell 2000 (IWM) again leading the way to the downside.  After peaking back positive YTD in late August and into early this month, the IWM is now down 3.46%.  The NASDAQ (QQQ) was the clear winner, on a relative basis, and was helped by a strong showing in Apple (AAPL) which closed up 1.56%.  The S&P 500 (SPY) is now near, essentially at, its 50 day SMA and we are very interested to see how it reacts at this level.

Retail (XRT) again led the way to the downside and was the only sector on the WSC Scoreboard to finish down over 1%.  Big names weighing down the sector included ULTA Salon, Cosmetics & Fragrance (ULTA) down 2.41%, Cabela’s (CAB) down 1.84%, and Sonic Automotive (SAH) down 1.83%.  Also finishing weak on the session was Consumer Staples (XLP) and Transportation (IYT) which both finished down 0.88%.  All sectors on the WSC Scoreboard were lower but losing the least was Technology (XLK) as might be expected by the QQQ’s outperformance.  Also holding in was Utilities (XLU) and Energy (XLE).  We noted last night the XLE was approaching its 200 day SMA and that may provide some support.  It is very likely what helped the XLE outperform today however for a trade we would be waiting for a clear technical set-up and would not be interested in trying to catch the falling knife.

The Home Price Index ticket up 0/1% which was weaker than the expected 0.4% gain and we also saw the previous month revised down to 0.3% from 0.4%.  Tomorrow we get more housing data with New Home Sales coming out at 10am ET followed by some Fed speak around noon.

Economic Calendar week of 9/22/14

Reporting EPS 9/24/14 Pre-Market:

Companies Reporting EPS 9/24/14 pre-market

Analyst Comments:

Upgrades 9/23/14

Downgrades 9/23/14

Initiations 9/23/14

Price Target Changes 9/23/14