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Weekly Market Recap:
S&P 500 Market Drops Hard But Bounces Off Of 50-Day SMA
Monday 6/22,
The market had a good ole fashioned broad based
sell-off today after the World Bank released a bleak forcast
for the general economy in 2009. The Dow dropped -200.72 or
-2.35%. The Nasdaq shed -61.28 or -3.35% and the S&P 500 lost
-28.00 or -3.06% to end the day at 893.04 also dropping back
down below the 200-Day SMA after having been above it for 3
weeks. It was a broad based sell-off with declining issues
outnumbering advancers by 10-to-1 in the S&P and with 27 out
of 30 Dow issues falling for the day. I would look for at the
very least another day of weakness in the markets with the
possiblity of gap downs on Tuesday do to the force of the
momentum going into the close on Monday. The next support
level for the S&P 500 is the 875 level and we are likely
to see a bounce of some sort in that zone.
Tuesday 6/23,
The market but on the breaks today after Monday's
big drop and traded in a narrow range. For instance the daily
range on Monday was 2.9% whereas the range on Tuesday was
only 0.9%. The Dow closed lower by just -16.10 or -0.19% and
the Nasdaq -1.27 or -0.07%. The S&P 500 gained +2.06 or +0.23%
to finish at 895.10. The S&P has closed below its 5-day SMA 6
out of the last 7 trading days and the stochastic is oversold
with a reading of 5 so we are due for technical bounce, however
we have the 50-Day moving average just overhead at 900 as well
as the 30-period on the 60-min. chart at 908. We have to
consider that zone as resistance until proven otherwise. If
the market is able to push up through that area or happens to
gap above that area then the door is open for a further
advance.
Wednesday 6/24,
Today was a roller coaster day with the indexes popping higher at
the open only to roll over and sell back down towards the close.
The S&P 500 sits right at the 50-Day SMA.
Thursday 6/25,
The indexes shot to the upside straight out
of the starting gate today to post 2%+ gains. It was pretty
much a technical bounce off of the 50-day SMA and the 200
day SMA on the daily charts after the big sell down that
stocks experienced on Monday. The Dow gained +172.54 +2.08%.
The Nasdaq added +37.20 or +2.08% and the S&P 500 finished
higher by +19.32 or +2.14% to close at 920.26. The S&P is
climbing right into an overhead 20-Day SMA at the 926 level
so look for that to be the next resistance zone.
Friday 6/26,
The market was slightly mixed today with little
action either way. The DOW closed down -34.01 or -0.40%. The
NASDAQ was up by 8.68 or +0.47% and the S&P 500 down by -1.36
or -0.15% to close at 918.90. You will notice from the daily
charts that the session finished with narrow range days with
the open equal the close signifying buying/selling equilibrium.
Notice the close is slightly hyper-extended above the 5-Day
SMA and just below the 20-Day SMA overhead which could act as
short term resistance.
The S&P 500 deflected lower off of its downward sloping 50-Week SMA. - See Weekly Chart Below
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