Dow: -23.34…
Nasdaq: -141.82… S&P: -15.27…
The stock market ended Thursday on a lower note, though the S&P 500 (-0.4%) was able to reclaim the bulk of its opening loss. The Dow (-0.1%) outperformed throughout the day while the Nasdaq (-1.0%) finished behind the broader market.
Reports of the Biden administration’s changing tone on corporate taxation helped the S&P 500 accelerate its morning bounce. The administration is reportedly open to implementing a minimum rate of 15% instead of raising the top corporate rate to 28% from 21%, but daylong weakness in heavily-weighted sectors like technology (-0.9%), consumer discretionary (-1.2%), and communication services (-0.7%) prevented the SPX from turning positive.
It was a choppy and very sloppy day. My P&L was very red at the get-go, then I thought I had a shot at being green, but then it went sideways to down for me the rest of the day.
The FAANMG stocks look bad again. Just look at the charts of AAPL, AMZN, MSFT, FB, and TSLA. They all look like shorts.
Not sure where we are headed here, but last night I threw out the idea that the Nazzy was forming a potential bearish head and shoulder pattern Today’s action confirmed that thought process a little more. Nazzy also went back below its 50-day moving average again. We will have to see what tomorrow brings.
Gold and silver were weak today. They are a bit extended and the bouncing dollar didn’t help.
Biotech (XBI) is still going nowhere.
Utilities and staples (defensive) were green today.
The meme stocks were all over the place today but gave back some of yesterday’s gains and closed down anywhere from 10-20%.