Looking Ahead to Wednesday's Market

Quick Recap of Tuesday’s Session:

Stocks finished mixed but mostly lower on Tuesday. Expectations for additional stimulus in China and improved sentiment in the Eurozone helped stocks higher at the open and in early trading. The S&P 500 hit new 2012 highs roughly an hour after the open, though it would be all downhill from there. Major indices sold off the rest of the session, marking the bears’ first legitimate victory since August 2. The S&P 500 finished 13 points off of its intraday high. Midcaps outperformed, and ended the day as the only major index in positive territory.

S&P 500 -0.35%, NASDAQ -0.29%, DJIA -0.51%, Midcaps +0.17%.

Looking Ahead to Wednesday:

• Overnight there are no economic data releases from Europe.
  
• Before the bell here in the U.S. we get MBA Mortgage Purchase Applications.
  
• Shortly after the open we get Existing Home Sales at 10:00am EST.
  
• Tuesday was a clear intraday victory for the bear camp. Once the S&P 500 hit above its last 2012 highs, the selling began and didn’t stop until the close. While the intermediate term trend is still largely intact, and the net effect of the selloff was quite modest, this could mark a shift away from the heavy dip-buyer’s market that we’ve seen in this quiet August month. Wednesday doesn’t look to be too eventful at this point in time, so we’ll have to wait and see if the bears can follow through.

 

  S&P 500 - Intraday

 

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