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CI Market Dashboard Reaches Historically-Low Bullish Level

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Weekly Market Summary

The Dow Jones Industrial Average (DJIA) lost 0.6% for the week, posting its second consecutive weekly loss to close at 18,138.38. For yet another week, the 50-day moving average (18,352.62) appears to be a resistance point to the upside. To the downside, we look for round-number support at 18,000.

The S&P 500 Index (SPX) slid 1% this week to 2,132.98. This week, the index created some downside separation with its 50-day moving average, which is at 2,164.57. The index neared support around 2,125 but it held for the time being.

According to the Select Sector SPDRs website, only three of the 11 S&P Select Sector SPDRs posted gains this week. Real estate (XLRE) and utilities (XLU), which had suffered in recent weeks on prospects of rising interest rates, posted gains of 1.22% and 1.34%, respectively. Healthcare (XLV) dropped 3.13%. Technology (XLK) slipped 0.52% for the week.

The broad market Wilshire 5000 (W5000) lost 1.02% to end the week at 21,168.82. This index also opened some distance to the downside between it and its 50-day moving average (22,503.99). As the index nears 22,000, we look to that level to offer round-number support.

The tech-laden Nasdaq Composite (COMP) ended the week at 5,214.16 after dropping 1.5%. This week the index succumbed to selling pressure and moved below its 50-day moving average (5,248.58). The index tested the 5,200 level this week and we look to it to offer downside support.

The Russell 2000 (RUT) index of small stocks dropped 1.95% this week to 1,212.41. In doing so, it lost the ground above its 50-day moving average, which is at 1,237.73. We now look for support around the 1,100 mark, which held in mid-September.

The CBOE Volatility Index (VIX) soared 19.6% this week at 16.12.

Computerized Investing Market Dashboard Indicators

This week, one of the Market Dashboard indicators triggered a new neutral signal, switching from bullish, while another triggered a new bearish signal, moving from neutral. 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 (link) 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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