STOCKS TURN DOWN AS BONDS BOUNCE -- APPLE WEIGHS ON TECHNOLOGY AS VERIZON HAS STRONG DAY -- WEAKER DOLLAR BOOSTS GOLD
STOCK INDEXES TURN DOWN ... Stocks are weakening after the Fed statement. Chart 1 shows the DJ Industrial SPDR (DIA) reversing down in late afternoon trading. It may now retest last week's low. Chart 2 shows the S&P 500 SPDRS (SPY) doing the same. Chart 3 shows the PowerShares QQQ Trust selling off as well. All three remain below their 20-day averages (green line) which keeps their downtrend intact. Some money coming out of stocks is moving into bonds. A slight selloff in the dollar is boosting gold and other commodities. Stocks holding up better are energy, materials, utilities, staples, and telecom. The last three pay dividends and are defensive in nature. Technology is leading the market lower. Apple has a lot to do with that.
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Chart 1
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Chart 2
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Chart 3
APPLE FALLS WHILE VERIZON RISES... Chart 4 shows Apple (AAPL) falling 6% today to lead the technology sector and the rest of the market lower. The market's biggest stock is bearing down on its August intra-day lows. By contrast, Chart 5 shows Verizon (VZ) nearing a 52-week high. That's reflective of some defensive money flowing into the telecom sector.
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Chart 4
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Chart 5
GOLD MOVES HIGHER... A modestly dovish Fed and a weaker dollar are boosting gold. Chart 6 shows the Gold Trust SPDR (GLD) rising today to a two-month high. Crude oil and other commodities are also bouncing. The green bars show the US Dollar Index selling off modestly in the afternoon. Judging from stock market performance, the Fed statement wasn't dovish enough.
