By Investor’s Yak
Little changed from last week, and more purchase conviction will be necessary for this market to take off. (Read last weeks “Troublesome Index Patterns”).
Here are the three things you need to know:
1. Major Market Indices are the same as last week with these additions:
- S&P500 broke below the 200 day moving average (DMA) but bounced back to rest on it.
- NASDAQ broke below its $5000 price support then returned to rest on that support.
2. Major Markets bouncing back (as stated above) indicates some institutional conviction; But for how long?
3. Other Sectors
- Utilities moved higher as expected and actually closed above the 50 and 200 DMA
- Homebuilders broke above their trading range
- Gold, Silver, Platinum, are still below their 50 and 200 DMA, but have succeeded in a small up move. The longer term weekly Action Zones notionally imply a bottom. And if possible, a bottom could be reinforced with an end of year seasonal rally from commodity purchases by jewelry companies supporting different holidays around the world.
- Healthcare and Pharmaceuticals appear to be topping out and the Biotechnologies have already busted below the 50 DMA.
Event calendar affecting markets this month
20 August – Greece ECB bond payment due
28-31 August – Window Dressing
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