Tuesday and today seemed like days the market could have fallen apart, yet we didn’t. We closed within points of yesterday’s close but reversed sharply from the morning high espedially on the NASDAQ. We are losing upside momentum and the downtrend could re-exert itself any time now. After hours earnings hit technology stocks like JDSU and NTAP. NTAP was down over 10% on poor guidance. Would the soft guidance start to spread to other technology companies and even other industries? While the bears will likely try again, Jobless Claims, CPI, Philly Fed and Home Sales number tomorrow before the market opens will set the tone. However, all the put buying today is helping to setup a wall of worry that may help cushion steep price drops.
