TRANSPORTS AND TECHS ARE HAVING A BAD DAY -- AIRLINES ARE DOWN 4% -- UPS IS ALSO HAVE A BAD DAY -- NASDAQ 100 IS SUFFERING DOWNSIDE REVERSAL ON SELLING OF BIG TECH STOCKS -- THAT INCLUDES APPLE AND GOOGLE -- SEMICONDUCTORS ARE ALSO TURNING SHARPLY LOWER
TRANSPORTATION ISHARES FALL BELOW 50-DAY LINE... After hitting a new record earlier in the month, transportation stocks are being sold pretty hard today . Chart 1 shows the Transportation Average iShares (IYT) plunging 3% to the lowest level in nearly two months. The IYT has also fallen back below its 50-day average. Airline stocks are down nearly 4% (Chart 2). So are a lot of individual stocks, Today's biggest percentage losers are Landstar (-7%), CSX (-5%), Kirby (-4%), UPS (-4%), and Ryder (-4%). Chart 3 shops UPS having an especially bad day. Needless to say, this big a setback in the transportation group is a potential negative sign for the rest of the market which is in an overbought condition. So is today's drop in technology stocks.
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Chart 1
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Chart 2
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Chart 3
TECH REVERSAL WEIGHS ON NASDAQ 100... Technology stocks are leading a downside reversal in the Nasdaq market. Chart 4 shows the PowerShares QQQ turning lower in heavy trading after trading higher this morning. Some of the bigger tech names turning lower are Apple (-2%), Google (-2%), Microsoft (-1%), Adobe (-3%), Ebay (-3%). Chart 5 shows Apple turning sharply lower. Chart 6 shows Google trading back below its 50-day average. Semiconductors are one of the day's weakest groups in the tech space. Chart 7 shows the PHLX Semiconductor iShares (SOXX) trading 2% lower. Some of its biggest losers are Teradyne (-10%), Nvidia (-3%), Applied Materials (-3%), and Xilinx (-2%). Chart 8 shows a big downside reversal in Xilinx on rising volume. Not surprisingly, tech selling is also causing some profit-taking in the broader market.
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Chart 4
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Chart 5
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Chart 6
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Chart 7
