Not much to add on the index level versus Friday’s comments – stocks opened down, dip buyers came in immediately and pushed stocks up but a bit of buyer exhaustion came in and all those gains were lost. Then a late day rally pushed indexes back to the green. The S&P 500 gained 0.09% and the NASDAQ 0.34%. We’ve been saying the past week the NASDAQ has more room to run then the S&P 500 and thus far it has outperformed but right now it is overextended.Continue reading
Another positive day for the bulls as the overbought condition we saw Tuesday only had 1 day of rest (yesterday) and today another moderate move. This despite a quite awful GDP figure in the morning but most are blaming that on weather. The S&P 500 and NASDAQ had twin gains of 0.54%. The Commerce Department said gross domestic product declined at a 1 percent annualized rate in the first quarter. Analysts had estimated a 0.4 percent contraction.Continue reading
We noted a potential change of trend last Thursday when a 2 month downtrend on the NASDAQ had reversed. We also started pointing out in our recaps late last week a lot of broken down areas of the market (momentum / growth type stocks) staged breakouts over long term downtrends. Last Friday was a nice through day but the NASDAQ still needed to create a new higher high which it did easily today. So the time for risk raking came back to the market over the past 3 sessions. The S&P 500 gained 0.60% and the NASDAQ 1.22%. Durable goods unexpectedly rose 0.8 percent in April, according to the Commerce Department, exceeding expectation for a loss of 0.7 percent.Continue reading
The NASDAQ capped off a strong week of out performance as we finally saw some rotation back into high growth / momentum type of stocks. Today the S&P 500 gained 0.42% but the NASDAQ jumped 0.76%; this continued a trend we saw much of the week. Weeks just ahead of a holiday are generally very light in volume and tend to drift upward in the absence of news so that was par for the course this week. There was some decent housing data.Continue reading
In yesterday’s recap we wrote:
The NASDAQ is back to a key area – that downtrend line than connects highs of the past few months; the last visit here led to an immediate rejection. If you are bearish you can place a short against the index in this general area with a top above the trend line.
This is the benefit of technical analysis – it shows you patterns and probability. Of course it is no guarantee but you had a low risk trade as of yesterday’s closing action as the NASDAQ was hitting an area it has been rejected at. One time it will stop being rejected at a similar area and the trade won’t work but until then you respect the pattern. Today indexes opened badly and sold off throughout the session until a late day rally reduced losses. The S&P 500 fell 0.65% and the NASDAQ 0.70%. A bad data point out of Caterpillar and some bad earnings data out of a bunch of retailers hurt the market.Continue reading
Monday saw a reversal of fortune of sorts as the type of names bloodied over much of the past 2 months did the leading while the more slow growth fare lagged. The S&P 500 ended up 0.38% and the NASDAQ 0.98% after both indexes opened slightly in the red. There was no major economic news on the day.Continue reading
Today we had the S&P 500 add 0.15% and the NASDAQ 0.50%; both were in the red much of the first half of the day but rallied late. Beaten down tech stocks and small caps had a bounce – they were due. At this point the NASDAQ is just trying to bounce back a bit from very oversold levels while the S&P continues to carve out a range it has been in for 2 months.
If you are curious Chris Kimble, who runs a charting service, was noted by Yahoo Finance as saying there has only been twice in the past 35 years when the NYSE is hitting new high as the Russell 2000 falls below the 200 day moving average – and both those years are pretty infamous (2007, 1999). Bad things happened right after; now this is a very small sample size but those were 2 major peaks so if 2015 turns out badly … it certainly will be an interesting indicator to watch go forward.Continue reading
Indexes continue to churn in a range they have been in for a week, with random movements day to day. Until we see the NASDAQ break out of this pattern and make a new higher high it is difficult to get very rah rah about this market. The S&P 500 fell 0.90% and the NASDAQ 1.38%.Continue reading