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CI Market Dashboard: Bulls Make Slight Retreat This Week

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Weekly Market Summary

The Dow Jones Industrial Average (DJIA) eked out a nearly 0.1% gain for the week and closed at 18,161.19. The index has been trading in a narrow range for the last couple of weeks, bounded to the upside by the 50-day moving average (18,272.32). To the downside, we still look for round-number support at 18,000.

The S&P 500 Index (SPX) surrendered 0.7% to end the week at 2,126.41. The index created some downside separation with its 50-day moving average, currently at 2,155.73, but we still believe that may pose some resistance to the upside moving forward. We continue to look to the 2,125 level for initial support, which held once again this week.

According to the Select Sector SPDRs website, five of the 11 S&P Select Sector SPDRs posted gains this week. The biggest loser for the week was real estate (XLRE), which dropped 3.4%. Utilities (XLU) and consumer staples (XLP) posted the biggest gains for the week, adding 0.96% and 0.84%, respectively.

The broad market Wilshire 5000 (W5000) dipped 0.92% for the week and closed at 22,059.65. The index moved away from the 50-day moving average, currently at 22,419.22, but we still feel it may offer some resistance to the upside moving forward. To the downside, we expect round-number support at the 22,000 level.

The tech-laden Nasdaq Composite (COMP) slid 1.3% over the last five trading sessions to close at 5,190.10. After ending last week above the 50-day moving average, the index moved through it decisively to the downside on Thursday and closed the week below it. While the index moved below round-number support at 5,200 on an intraday basis, the index did close above it at week’s end, so we continue to look to it for initial support.

The Russell 2000 (RUT) index of small stocks closed at 1,187.61 after diving 2.5% for the week. In doing so, the index took out support at the 1,220 and 1,200 levels. The index did seem to find some footing at its current level, which had served as near-term resistance in early June. We will have to wait and see whether that level will hold moving forward.

The CBOE Volatility Index (VIX) jumped 21.4% this week to close at 16.19, its highest weekly close since September 9.

Computerized Investing Market Dashboard Indicators

This week, one of the Market Dashboard indicators triggered a new bearish signal, switching from bullish. However, no indicators generated confirming bullish or bearish signals this week.

To see the current signals of all the dashboard indicators, visit the CI Market Dashboard.

The Market Dashboard is one of the many benefits of Computerized Investing, a service from AAII that harnesses the power of technology to help individual investors become more effective managers of their own portfolios. To learn more about Computerized Investing, visit http://www.aaii.com/computerized-investing/about

 

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