Overextended Conditions Send Wall Street Lower

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as overextended conditions send Wall Street lower. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow futures higher on hopes of a China-US trade deal

U.S. stock index futures were higher Monday morning, on the back of renewed hopes in trade talks between the U.S. and China. At around 03:30 a.m. ET, Dow futures rose 68 points, indicating a positive open of more than 74 points. Futures on the S&P and Nasdaq were both seen slightly higher.

The S&P 500 (SPY) slipped -0.39% today. Sector decliners led advancers 6 to 5 as shown below in the sector graph. Healthcare (XLV) led decliners. down with a -1.36% loss. Consumer discretionary (XLY), consumer staples (XLP), financials (XLF), industrials (XLI) and technology (XLK) each had minor losses of less than 1%. Communication services (XLC), energy (XLE0, materials (XLB), real estate (XLRE) and utilities (XLU) each had small gains of less than 1%.

The Dow Jones index subtracted 206 points (-0.79%) to close at 25,819. The Nasdaq fell 17 points (-0.23) to settle at 7,577.

Overextended Conditions Send Wall Street Lower

Stocks dropped Monday as overbought conditions pressured stocks lower. Equities began the day in the green as news came out that the US and China were near completing a new trade deal. However, indexes fell as investors decided to sell the rally, saying a new trade deal was already baked in for a new trade agreement. I found the following quote in the above CNBC article to be informative, “Markets expect a deal by the end of March, but the key here will be whether the deal results in the removal of all tariffs,” said Tom Essaye, founder of The Sevens Report. “The reports this morning imply that might happen, but it will have to become reality for US-China trade to provide a sustainable positive catalyst for stocks.”

Key Takeaways…

I took the following CNBC screenshots this morning regarding US China trade latest, close to old highs, moving markets, S&P 500 EPS estimates and boost to earnings:

Overextended Conditions Send Wall Street Lower

Overextended Conditions Send Wall Street Lower

Overextended Conditions Send Wall Street Lower

Overextended Conditions Send Wall Street Lower

Overextended Conditions Send Wall Street Lower

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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3/4/19

S&P 500 Sector Graph

Overextended Conditions Send Wall Street Lower

S&P 500 (SPY)

Overextended Conditions Send Wall Street Lower

Communication Services (XLC)

Overextended Conditions Send Wall Street Lower

Consumer Discretionary (XLY)

Overextended Conditions Send Wall Street Lower

Consumer Staples (XLP)

Overextended Conditions Send Wall Street Lower

Energy (XLE)

Overextended Conditions Send Wall Street Lower

Financials (XLF)

Overextended Conditions Send Wall Street Lower

Real Estate (XLRE)

Overextended Conditions Send Wall Street Lower

Healthcare (XLV)

Overextended Conditions Send Wall Street Lower

Industrials (XLI)

Overextended Conditions Send Wall Street Lower

Materials (XLB)

Overextended Conditions Send Wall Street Lower

Technology (XLK)

Overextended Conditions Send Wall Street Lower

Utilities (XLU)

Overextended Conditions Send Wall Street Lower

S&P 500 Sector Heat Map

Overextended Conditions Send Wall Street Lower

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