NEW YORK (TheStreet) -- Disney (DIS - Get Report) is getting hit hard Wednesday morning following last night's earnings disappointment. The stock is off more than 8% after opening the session with a huge downside gap.
Volume driving this flush is monstrous, already making Wednesday the heaviest downside day since August 2011. This is a sharp reversal from the bullish action just ahead of Disney's third-quarter report.
Disney did manage a slight bounce after the opening bell on Wednesday, but it was quickly rejected as the stock reached heavy resistance near $114. Recent investors, who powered the stock higher last month, took advantage of the rally back up to the July lows at $114.27 by exiting deeply underwater positions. Near midday, Disney was back below its gap-lower open as the pressure on the longs builds.
Less than 24 hours ago, the stock closed at new all-time highs. It has now wiped out the entire July gains and is headed lower in the near term.
Also in this area is Disney's March low at $102.90. A drop down to this major support zone, accompanied by an oversold MACD reading, will attract investors' attention.
For another techical take on Disney, check out colleague Richard Suttmeier's "Disney's Key Levels After Being Crushed by Revenue Miss." And here's Jim Cramer's take on the stock.