The Dow Jones Industrial Average (DJIA – 10,120.46) ended the day on a drop of 115.7 points, or 1.1%, as only six of its 30 components managed to defy the downside bias. Procter & Gamble (PG) led the advancing blue chips with a 1.4% rise in the wake of its earnings report, while Bank of America (BAC) added 1.2%. Among the 24 laggards, Hewlett-Packard (HPQ) and American Express (AXP) fared the worst. The Dow is now positioned south of its 20-week moving average, which hasn't been breached on a weekly closing basis since early April 2009.
The S&P 500 Index (SPX – 1,084.53) swallowed a daily deficit of roughly 13 points, or 1.2%, and is also in danger of notching a weekly close below support at its 20-week trendline. Finally, the Nasdaq Composite (COMP – 2,179.00) endured the steepest slide, ending the session with a drop of 42.4 points, or 1.9%. However, the COMP is still perched narrowly above its 20-week moving average.
Crude futures finished nearly unchanged today, with traders unable to decide whether they should buy low or stay away entirely. The commodity looks like a bit of a bargain after tagging a six-week low on Wednesday, but yesterday's bearish inventory report proved difficult to dismiss. Additionally, today's disappointing jobs data offered little hope for a rebound in energy demand. With most players staying firmly planted on the sidelines, crude oil for March delivery gave up just 3 cents to finish at $73.64 per barrel.
Gold futures also finished on a minimal deficit, rebounding admirably from steep losses earlier in the session. The precious metal plummeted to an intraday low of $1,074.40 per ounce, its lowest price since Nov. 3, 2009, as the U.S. dollar benefited from an influx of safe-haven buying interest. However, traders have been eyeing support near $1,075, and gold's flirtation with this level prompted a surge of technical buying. February-dated gold futures finished on a nearly negligible dip of 90 cents at $1,083.60 per ounce.
Levels to Watch in Trading:
Dow Jones Industrial Average (DJIA – 10,120.46) - support at 9,000; resistance at 11,000
S&P 500 Index (SPX – 1,084.53) - support at 950; resistance at 1,300
Nasdaq Composite (COMP – 2,179.00) - support at 1,900; resistance at 2,600
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