Wal-Mart: A Month's Worth Of Trading Activity In A Matter Of Minutes

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Wal-Mart Stores, Inc. WMT shares were trading lower by $2.29 (2.7 percent) at $84.01 in Thursday's session. Despite a Q4 beat ($1.61 billion vs. estimates of $1.53 billion), the Street seems to be focusing on the shortfall in sales ($131.57 vs. estimates of $132.2 billion).

Lowered guidance for FY 2015 ($4.70-$5.05 vs. estimates of $5.19) also has investors exiting the issue in Thursday's session.

Intensifying the decline is the pre-market action, which had market participants rallying the issue to $88.70 in anticipation of good results moments before the release. When the negative news hit the tape, the tide quickly turned taking the issue from a positive $2.00 to a negative $2.00 in a matter of minutes.

At the 9:30 a.m. ET opening, the selling continued until it found support at $83.51 and has been finding intraday resistance at the $84.30 level (coinciding with its opening price of $84.31.) If the decline continues through the intraday low, there may be additional support at the trio of lows near $83.00 level from mid-December.