Stock Market Today: Tides May Have Changed for Stocks in Short Term
NEW YORK ( TheStreet) -- The markets must bounce soon, or else we could be headed for a short-term change in trend.
Stocks did a sudden about-face midday Friday and wiped out earlier gains in reaction to an escalation of conflict in Ukraine.
They had been on track for a fifth day of gains out of six on Friday, when the S&P 500
MKM Partners' chief market technician Jonathan Krinsky said after the SPX traded up to 1,964 on Friday, just shy of its July 31st high of 1,965, it has seen a "fierce" rejection, and is now trading back near Thursday's low of 1,947.
The TICK index of stocks trading on an uptick minus stocks trading on a downtick was registering a -1464, the lowest reading since March, which indicates very aggressive and emotional selling, said Krinsky.
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Bloomberg reported that Ukraine said its troops attacked and partially destroyed an armed convoy that had crossed the border from Russian territory. The Ukrainian government troops engaged the vehicles that had arrived overnight through a rebel-held section of the border and Ukrainian soldiers continue to come under shelling, including rounds fired from Russia, according to Bloomberg.
The U.S. manufacturing sector remains healthy, according to latest government figures. Industrial output increased by a strong, more-than-expected 0.4% in July. The Empire State Manufacturing Index slid back in August after a substantial gain in July to a still solid 14.7.
The August University of Michigan Consumer Sentiment Index came in lower than expected after the stock market's pullback in recent weeks, but is expected by economists to be upgraded in the final August estimate as stock prices have been rallying again and the labor market appears to be expanding.
In Friday's top corporate headlines , Coca-Cola
Analyst actions were also playing a role in Friday's individual stock action. Gilead
--By Andrea Tse in New York