Market technician Dave Chojnacki of StreetOne Technical Analysis takes a deep dive into the underlying technicals of today’s markets.
With no economic reports to guide the market, investors looked at earnings and markets overseas to set a direction at the open. Poor earnings had equities gapping down at the open and quickly broke key support levels. The Dow was down over 500 points at one point as the sell-off was widespread. While the sell-off was steep it only lasted for the first hour.
The major averages gradually started to move to the upside and began erasing some of the big losses, as all three major indices were below their 200D-SMA’s at one point. CAT was responsible for a big part of the loss in the Dow, as it fell 7.5% on the day. Techs, which were hit early, also came back to erase a good portion of the early carnage. By the end of the day, the losses were small to moderate. The 10YR fell to 3.17.
Read more at : https://www.investing.com/analysis/seesaw-action-defines-dow-jones-industrial-average-200350236