The market was weak during the first half of the trading day Wednesday, with the S&P retesting the breakout from the neckline of the head and shoulders pattern around 1340. Momentum leaders continued to sell off hard, and the indices did not appear to paint an accurate picture in terms of technical damage. However, the market was able to bounce strongly off that level and for now prevent this selling from becoming more than just a healthy technical correction.
The tech sector was able to bounce strongly off its lows of the day. Leader Apple Inc. (AAPL) continues to hold in well, but has been unable to get any momentum out of its descending channel. If the bounce continues tomorrow, look for AAPL to lead. Amazon.com, Inc. (AMZN) also continues to show strength, holding up in its upper range. Although extended after a post-earnings run to new highs, AMZN certainly feels like it wants to go much higher. Cloud computing stocks were also among the strongest bouncers in the afternoon, several bouncing off moving averages.
Watch the T3Live.com Daily Recap with Scott Redler below.
*DISCLOSURE: Scott Redler is long AAPL, SLV, SLW, PAAS. Short SPY.
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