The S&P 500 gave up earlier gains and closed in the red Wednesday as tech stocks sold off, continuing a market rotation out of high-flying growth names.

The market suffered an ugly close where the declines in technology shares accelerated, dragging down the major averages in a rapid fashion in the final minutes. The S&P 500 fell 0.6% to 3,889.14 after rising as much as 0.8%. 

The tech sell-off came even as bond yields continued to decline from recent highs. The 10-year Treasury yield dipped 3 basis points to 1.61% Wednesday, falling for a third day after the rate hit a 14-month high last week.

One bright spot on Wednesday was the energy sector, which gained 2.5% as oil prices bounced back 6%. The material and financial sectors also outperformed, rising about 0.7% each.

Investors are on edge as many regions of the world are seeing rising Covid-19 cases as highly contagious variants continue to spread. Germany and France are extending or enforcing new lockdown measures.
 

Plan A : Long if market supported firm above 3898. Targets are 3913, 3931 and 3949.

Plan B : Short if market failed to support above 3898. Targets are 3873, 3840 and 3798.

Futures contracts tied to the major U.S. stock indexes rose in early morning trading on Thursday after pressure on technology stocks sent the Nasdaq Composite down 2% during the regular session.

The tech-heavy Nasdaq Composite dropped 2% to 12,961.89, closing at its session low. Apple, Facebook and Netflix all slid more than 2%, while Tesla fell 4.8%.

Pressure on equities came even as bond yields continued to decline from recent highs. The 10-year Treasury yield dipped 3 basis points to 1.61% Wednesday, falling for a third day after the rate hit a 14-month high last week.

Investors will on Thursday pore over the Labor Department’s latest report on jobless claims. The department is expected to report that 735,000 Americans filed for.
 

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Plan A : Short if market failed to support above 12752. Targets are 12710, 12675 and 12631.

Plan B : Long if market retraced but supported firm above 12752. Targets are 12782, 12821 and 12859.

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Plan A : Remain sell as long as oil price trades below 60.8. Targets are 59.3 and 57.3. 

Plan B : Consider long only if oil price able to trade firmly above 60.6. Targets are 61.6 and 62.7.