Since these two waves of upside action in the Dow and S&P 500 took place on slower momentum than the morning selloff, it made it likely that we'd see a stronger correction following the second high. This formed into 15:00 ET with another set of three small waves of downside on the 2 minute time frame. Support hit just prior to the 15:00 ET correction period at prior lows and the 15 minute 20 sma in the Nasdaq, creating favor for a reaction off the support to further recovery efforts. At the same time, news hit the wires, boosting this already bullish pattern to an extent that would have been unlikely to have occurred without it.
With just an hour left in the session, Reuters reported that Greece received approval of its newest five-year austerity plan from the European Union and the International Monetary Fund. So, while the market already favored a technical bounce into the final hour of trade, this piece of information turbo-charged the move and the Nasdaq quickly returned to Thursday's highs while the S&P 500 and Dow also reclaimed most of the session's losses.
The Dow Jones Industrial Average ($DJI) ended the day with a loss of 59.67 points, or 0.49%, and closed at 12,050.00 on Thursday. Nine of the Dow's thirty index components posted a gain. The top performers were Home Depot (HD) (+2.06%), Pfizer (PFE) (+1.82%), Intel (INTC) (+1.50%), and Cisco Systems (CSCO) (+0.72%). The weakest performers were Coca-Cola (KO) (-2.14%), Exxon Mobil (XOM) (-1.73%), Chevron Corp. (CVX) (-1.69%), and JP Morgan Chase (JPM) (-1.52%).
The S&P 500 ($SPX) loss of 3.64 points, or 0.28%, and closed at 1,283.50. The top percentage performer in the S&P 500 on Thursday was Western Digital Corp. (WDC) (+7.06%). It was followed by strong gains in Bristol Myers Squibb (BMY) (+5.73%), Bed Bath & Beyond (BBBY) (+5.31%), and Red Hat (RHT) (+3.55%). The weakest were Flowserve Corp. (FLS) (-3.04%), HCP Inc. (HCP) (-3.00%), AvalonBay Communities (AVB) (-2.95%), and Boston Properties (BXP) (-2.89%).