Stocks weaker in late FI trade, near session lows as Energy, Consumer Discretionary and Materials sectors continue to underperform. Currently, SPX eminis trade -52.75 (-1.31%) at 3978.75; DJIA -355.96 (-1.11%) at 31755.75; Nasdaq -175.7 (-1.5%) at 11835.87.
- Technicals: S&P E-Minis weakened further Monday, taking out the Monday low and resuming the recent bearish activity. This reinforces bearish conditions, with prices now well below the 50-day EMA at 4086.25. The breach of this pivot support strengthens the case for bears and signals scope for 3902.01 next, a Fibonacci retracement. On the upside, initial firm resistance has been defined at 4217.25. A break would ease the current bearish pressure.
- SPX leading/lagging sectors: Financials -0.64%, followed by Health Care -0.77% and Consumer Staples -0.97%. Laggers: Tracking strong gains in Crude Monday, Energy sector recedes -3.73% (West Texas Crude -5.35 at 91.66), followed by Materials -1.67%, Consumer Discretionary (-1.66%) weighed by auto, and Industrials -1.56%.
- Dow Industrials Leaders/Laggers: Nike (NKE) -0.16 at 107.72, JP Morgan (JPM) -0.21 at 114.18 and American Express (AXP) -0.25 at 154.29. Laggers: United Health (UNH) extends losses by -7.81 at 521.96, Caterpillar (CAT) -5.33 at 186.45, Chevron (CVX) -4.59 at 160.04.