German Shares Suggesting Caution In U.S.

German Shares Suggesting Caution In U.S.

Tom Bowley | April 06, 2016 at 09:00 AM

Market Recap for Tuesday, April 5, 2016

U.S. equities had a rough day from the opening bell on Tuesday. The Dow Jones fell more than 100 points in a session for the first time in nearly a month as the rally off the February 11th bottom has continued to unfold. The largest percentage loss was felt on the Russell 2000 ($RUT), where that small cap index fell 1.14% and closed on its low of the day. I'm highlighting the potential downside target for the RUT in the Current Outlook section below.

Germany had a rough day on Tuesday, losing 259 points or 2.63%. I view this as a big negative for U.S. stocks and I explain why in the Sector/Industry Watch section below. The weekly downtrend appears to be resuming and that could put pressure on stocks here.

Among sectors on Tuesday, the red-hot utilities sector sold off 1.88% to approach its rising 20 day EMA. Despite leading to the downside on Tuesday, the XLU remains the best performing sector over the past three months, six months and year.