Market Shows Signs of a Breakdown: Is it Time to Buy? (XLE, XLF, XLK)
The U.S. market followed Europe’s lead, taking another tumble on Wednesday. The Dow Jones Industrial Average fell roughly 1%, down 124 points to 13,075; posting only its second triple-digit loss this year. The S&P 500 fell 1% to 1,399, and the Nasdaq took the hardest hit falling 1.5% to 3,068; its steepest loss of the year.
Energy (NYSEArca:XLE), Financials (NYSEArca:XLF), and Technology (NYSEArca:XLK) lead the declines, while Telecoms were the only S&P sector to remain in positive territory for the day. A weak bond auction in Spain fueled concerns about the ongoing Eurozone debt crisis, overshadowing a strong report on private payroll growth in the U.S. The latest ADP figures showed 209,000 jobs were added in March and an upwardly revised 230,000 in February.
So, is this the beginning of the highly anticipated pullback? And if so, should sidelined investors buy now?