Equity indexes face headwinds but have support

S&P 500

Friday's selloff continued throughout the morning, finally striking the lower end of the 60-minute trading channel shortly after noon. Volume spiked, indicating exhaustion, but the pace of the selloff meant that any rapid recovery was nearly impossible. Typically, the only time the market can manage to reverse quickly from such a drop is when the overall pace of the downtrend shifts. This often happens by the indices forming a series of slightly lower lows, such as seen on the 11th and into the morning of the 12th on the 30 minute charts. This allowed the market to pop on Thursday despite sharp selling Wednesday morning. As a result of this bias, the market was stuck in a narrow range into the closing bell with volume dropping off heavily compared to morning trade.

Nasdaq 100

The Dow Jones Industrial Average ($DJI) ended the day with a loss of 100.17 points, or 0.79%, and closed at 12,595.75 on Friday. Only four of the Dow's thirty index components posted a gain on the day. They were all fractional. The top performers were Kraft Foods (KFT) (+0.40%), Pfizer (PFE) (+0.14%), McDonalds (MCD) (+0.10%), and Proctor & Gamble (PG) (+0.03%). The weakest performers were Travelers (TRV) (-2.38%), Bank of America (BAC) (-2.21%), JP Morgan (JPM) (-2.13%), and Caterpillar (CAT) (-2.12%).

The S&P 500 ($SPX) fell 10.88 points, or 0.81%, and closed at 1,337.77. Dean Foods (DF) (+9.20%) was the strongest percentage performer in the index on Friday following an upgrade from Goldman Sachs to a buy. Other top percentage performers were Agilent Technologies (A) (+4.47%), Electronic Arts (ERTS) (+3.58%), and Gamestop Corp. (GME) (+3.05%). The weakest percentage performer was NVIDIA (NVDA) (-10.93%). Other top percentage decliners included CA Inc. (CA) (-8.62%), First Solar (FSLR) (-4.86%), and Janus Cap. Group (JNS) (-4.47%).

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