Weekly Market Summary
The U.S. stock market was relatively flat over this holiday-shortened week as gains in financials and a slight rebound in tech stocks were offset by losses in energy stocks as the price of oil continued to decline. Bank stocks have been on the rise over the last couple of weeks since the firms passed the Federal Reserve’s stress tests and some announced higher dividends and increased share buybacks. Financials also were lifted by Labor Department data showing U.S. hiring picked up more than expected in June, although wage growth was flat.
The Dow Jones Industrial Average (DJIA) advanced 0.3% this week to close at 21,414.34. Over the last 20 trading days, the blue-chip index is evenly split between winning and losing days. To the downside, the first meaning support lies at the 50-day moving average (21,144.30), followed by round-number support at 21,000.
The S&P 500 Index (SPX) gained 0.1% this week to 2,425.18. The index has also seen 10 up days and 10 down days over the last 20 trading sessions. On Thursday of this week, the large-cap index closed below its 50-day moving average but moved back above it by the end of Friday’s trading. We still look to the moving average, currently at 2,414.29, as near-term support. Below that is round-number support at 2,400.
Breadth in the market tilted negative this week, as only four of the 10 S&P Sector SPDRs posted gains. As we mentioned previously, financials (XLF) enjoyed a strong week, posting a 1.5% gain. Real estate (XLRE) was the weakest sector this week, shedding 1.52%, followed by energy (XLE) and its 1.4% decline. Technology (XLK) added 0.53% for the week.
The broad market Wilshire 5000 (W5000) ticked downward 0.04% this week to close at 25,219.16. On Thursday, the index closed below its 50-day moving average, only to move back above it and remain there on Friday. We still look to the moving average (25,110.56) for near-term support. Below that is round-number support at 25,000.
The tech-heavy Nasdaq Composite (COMP) climbed 0.2% this week to 6,153.08. Last week the index moved below its 50-day moving average and has remained there. We view the moving average, currently at 6,165.63, as a near-term speedbump. The index also tested round-number support at 6,100, closing below it on Thursday. However, the index moved back above it on Friday so we still view it as near-term support.
The Russell 2000 (RUT) index of smaller stocks clawed out a 0.03% gain this week to close at 1,415.84. The 1,400 level was tested but held on Thursday, as was the 50-day moving average at 1,399.28. In the near-term, we look to these levels as support.
The CBOE Volatility Index (VIX) eked out a 0.09% gain this week to 11.19.
Computerized Investing Market Dashboard Indicators
This week, none of the CI Market Dashboard Indicators triggered a new signal. In addition, none of the Dashboard indicators triggered confirming bearish or bullish signals this week.
To see the current signals of all the dashboard indicators, visit the CI Market Dashboard.
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