Follow-through weakness was seen in several tech stocks today, including Baidu and Apple.
Much like we saw on Friday, the market gave back early gains to finish in red figures. The Nasdaq, in keeping with the recent trend, was the weakest index, dropping 0.7%. The market can't seem to rekindle any upside momentum since the election as worries persist about the fiscal cliff and European sovereign debt crisis. The S&P 500 continues to linger below its 200-day moving average, and we believe that the longer we sit below that level, the higher the likelihood will be that we get another leg lower.
We saw follow-through weakness in several tech stocks today. Baidu (NASDAQ:BIDU) was one of the weakest, falling 5.7% and losing major support at $99.71. Apple (NASDAQ:AAPL) finished flat, but it was a disappointing outcome for the stock after it exhibited some early strength to go positive.
A bright spot in the market today was Home Depot (NYSE:HD), which broke out to new 52-week highs after a strong earnings report and upbeat guidance. The stock has been in a steep uptrend since the summer of 2011, more than doubling in price during that time period.
Cisco's (NASDAQ:CSCO) earnings after the close could contribute some bullish sentiment to the tape tomorrow morning. The company topped Wall Street's earnings estimates and is currently up almost 8% in extended hours trading after finishing the session flat leading up to the report.
Facebook (NASDAQ:FB) fell 1.2% on the day and will be in focus tomorrow as 800 million new shares will enter the open market after another post-IPO lockup period expires. Many expect the stock to sell off as the marketplace becomes inundated with the fresh supply.
Right now, traders are in "wait and see mode" as they wait for the market to prove itself.