The Dow Jones Industrial Average ($DJI) posted a loss of 47.23 points, or 0.44%, and closed at 10,788.05 on Thursday. Boeing (BA) (+0.86%) was the best performer in the Dow. It had triggered a daily buy setup on Wednesday with Phoenix™ when it broke through its 100 day moving average. The weakest components of the Dow were American Express (AXP) (-2.28%), Caterpillar Inc. (CAT) (-1.64%), Pfizer (PFE) (-1.32%), and Kraft Foods (KFT) (-1.12%).
The S&P 500 ($SPX) fell 3.53 points, or 0.31%, and closed at 1,141.20. The best performers in the S&P 500 were Devry Inc. (DV) (+4.95%), American Intl. Group (AIG) (+4.41%), Tyson Foods (TSN) (+3.89%), and Tenet Healthcare (THC) (+2.83%). AIG announced plans to begin to repay funds from the government's bailout. The weakest performers were Prudent Financial (PRU) (-4.16%), CF Inds. Holdings (CF) (-3.88%), JDS Uniphase Corp. (JDSU) (-3.35%), and Symantec Corp. (SYMC) (-3.07%).
The Nasdaq Composite ($COMPX) ended the session lower by 7.94 points, or 0.33%, on Thursday and it closed at 2,368.62. Logitech Intl. (LOGI) (+3.50) was the best performer in the Nasdaq-100. It was followed by Apollo Group (APOL) (+2.11%) and Qualcomm (QCOM) (+1.85%). Foster Wheeler (FWLT) (-3.09%), Symantec (SYMC) (-3.07%), Citrix Systems (CTXS) (-2.81%), and SanDisk (SNDK) (-2.63%) were the biggest losers in that index, which tracks the top 100 stocks in the Nasdaq.
The market will have a lot of data to contend with once again on Friday. Personal income and spending for August, consumer sentiment, construction spending, and the ISM manufacturing index are all due out in the morning. The index futures have been trending higher since noon on Thursday. A third wave to the upside took place between 3-6 a.m. ET.This is creating some exhaustion in the premarket. The larger daily trend is also weakening. While Friday's action intraday will likely be news-driven, the underlying struggle to push higher is starting to weaken. As I mentioned all week, October is typically a corrective month for the market and so far it's continuing to favor that bias.
Note: Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group, Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.