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| Netflix and Coinstar were both down more than 5% after Warner Bros releases streaming movie rentals through Facebook |
The market took back all of Monday’s losses in today’s session before closing slightly off the highs. The multi-week wedge pattern remains intact as investors weigh whether they can put risk on in the face of rising oil prices and civil unrest in the Middle East/North Africa. With the market bouncing off the lower trendline of the wedge, now its time to watch resistance levels at the upper end of the pattern, which stands around 1330-1332 on the S&P.
Tech stocks were a mixed bag in today’s session. The weak tech stocks were highlighted by Netflix, Inc. (NFLX) and Coinstar, Inc. (CSTR), which were both down more than 5% on news that Facebook appears set to eventually launch a competing streaming service (Warner Bros became the first to release streaming movie rentals through Facebook). The banks also played a big part in the rally, showing relative strength on account of positive comments coming from the Bank of America Corp. (BAC) analyst. Yesterday the banks were weak as Goldman Sachs Group Inc. (GS) broke down through the neckline of its bearish head and shoulders pattern, so today’s reversal of fortunes was a huge positive for the market. Ag stocks also continued to get hit in the morning, but once again found some support at their 50-day moving averages. Rare earth also perked up after being weak yesterday, much like the banks.
For more market and stock commentary watch the Daily Recap video from Scott Redler below.
*DISCLOSURE: Scott Redler is long AAPL, BAC, BIDU, INVE, GLD, MGM: Short SPY, SLV.
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