Stock Market Update

[BRIEFING.COM] The major indices started today's session on a lower note, as presaged by the equity futures market. Weakness in the mega-cap stocks acted as the key driver. The Vanguard Mega-Cap Growth ETF (MGK) is down 1.2%.

The communication services (-1.3%), information technology (-1.2%), and consumer discretionary (-1.0%) sectors, all of which house mega-cap components, are the biggest laggards on the sector front.

Notably, the S&P 500 is trading around a key support level in its 50-day moving average (6669.00). It dipped below that level briefly, touching 6661.98, before finding some support.

The 50-day moving average will be a closely watched level, certainly for the buy-the-dip crowd, since it has held repeatedly during the run from the April lows. It would not be regarded as a positive technical development if the S&P 500 closed below that key support area. If there is going to be a resuscitation of the buy-the-dip trade, it should be happening here.

The CBOE Volatility Index is up 7.3% to 20.93.