The 20’s support today’s drop

Index & Sector performance 12/8/14

The Market:

The S&P opened lower but like every other recent micro pullback it found a bottom and started to rally higher.  The market again looked like it wouldn’t be denied a higher close but then after the initial morning pop the indices started to roll and continued lower until roughly 2pm ET when they found a bottom for the session and moved off the lows into the close.

The lows on the S&P 500 (SPY) and NASDAQ (QQQ) correspond with the 20 day SMA and we will be looking to see if those lows can hold in the overnight session or if the market is vulnerable to a gap down.

In individual section Energy (XLE) was crushed closing down over 4% and breaking below the October lows.  We noted back during XLE’s first decline that often moves like what we saw in energy since the top in June do not end with “V” bottoms and take time.  This move back lower is all a part of taking time.  On the upside Utilities (XLU) led finishing up 0.76% followed by the Financials (XLF) up 0.48% and the seemingly always higher HealthCare (XLV) up 0.35%.

Economic Calendar week of 12/8/14

Reporting EPS 12/9/14 Pre-Market:

Companies reporting EPS 12/9/14 pre-market

Analyst Comments:

Upgrades 12/8/14

Downgrades 12/8/14

Initiations 12/8/14

Price Target Changes 12/8/14