The markets dropped sharply at the open today on the back of poor earnings reports from eBay Inc. (NASDAQ:EBAY) and QUALCOMM, Inc. (NASDAQ:QCOM).  In addition, major worries continue about Europe, specifically Greece.  Today, Moody’s dropped Greece’s sovereign ratings to A3 from A2 and placed them on review for further possible downgrade.  The dollar was sharply higher while the markets dumped lower.

Yesterday, I wrote an article calling for a market top on the back of Apple Inc. (NASDAQ:AAPL) inability to rally the market on amazing quarterly earnings.  This was a key signal to me, alerting to a market that just did not have anymore energy to go higher.  If Apple could not rock the markets higher with those star earnings, then what could be reported to push it higher?

JPMorgan Chase & Co. (NYSE:JPM) is dropping today, down over 2.00%.  Financial stocks are mixed overall.  As I mentioned, the dollar is much stronger today putting a lot of pressure on Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX).  In addition, other commodity stocks continue to be under pressure.

Gareth Soloway
Chief Market Strategist