Technology Extremely Weak

The markets are continuing to sell sharply today even though oil has pulled back nicely. This is a new aspect to the markets over the last month and something that may signal a significant shift in market activity. Technology is falling today, leading the markets lower. The Nasdaq is trading at 2,734.30, -50.37 (-1.81%). Apple Inc. AAPL ran into the key resistance at $360.00. It is taking a hit today, trading at $353.45, -6.55 (-1.82%). In addition, Amazon.com, Inc. AMZN is getting smacked, trading at $167.75, -3.92 (-2.28%). However, AMZN is now inching into the key double bottom from January 28th, 2011. Note the chart below.

The markets are definitely showing more signs of fear yet not much has changed in the Middle East. Libya is still a mess and will most likely continue that way in the near future but it has not spread to Saudi Arabia in any meaningful way. This is confirmed by the fact that oil has not shot dramatically higher today and has actually pulled back off the highs. This again, confirms the new aspect to the markets. This new aspect relates to the Federal Reserve slowing and stopping their print money policy which has been a drug to the markets. Take the drug away, and you have one unhappy addict. Hello U.S. stock market.

Volume started out weak today but once the selling took hold, it increased dramatically. Heavy volume continues to tell us there is institutional selling going on. This was noted weeks ago as distribution as the institutions were selling into the retail investors buying. This is a common theme at market tops.

Gareth Soloway
InTheMoneyStocks.com