Top Line: The stock market dropped on Tuesday as the Dow fell through the 8K mark once again. With INTC's (Intel) reaction to their earning's news after the close, Wednesday morning could be a bit of a challenge.
The market seemed to be thinking about the Goldman Sachs stock offering which dropped that stock about 10% today. There was the news that retail sales fell in March after some gains in the prior two months. The market is being very cautious about rallying. Once the market goes up another couple 1000 points no one will be cautious.
Last Tuesday, we thought the market was in a short downtrend that we said might end on Wednesday, April 15th down around 7400. Well, the market has had some backing and filling but today was only able to get down to the 7920 level. We don't think the market will actually drop into the 7400 level anymore but Wednesday could give us a nice trading low. We'll see.
After the market dropped on the GS/retail sales news today, INTC announced their earnings which beat expectations both in earnings and in revenues, as well as margins. That news did not inspire the market and INTC fell about 5% after the announcement. So, it looks like Tuesday was the financial stocks turn to go down and Wednesday could be the tech's chance to go down.
We need to remind you, in case you were wondering, we think this would be a buying opportunity.