Expect further down-testing ahead!

August 25. 2013

Market Review

Not surprisingly, last week turned out to be a rocky one, since the 9-week crash cycle has pushed the S&P 500 down towards 1,639 on Wednesday, before stocks rebounded for the week. All three major U.S. averages finished the week with a mixed performance. For the week, the Dow Jones Industrial Average fell 0.5 percent to close at 15,010.51. The blue-chip average declined for a third consecutive week, its longest weekly losing streak since Nov. 16, 2012. The S&P 500 rose 0.5 percent to close at 1,663.50. The Nasdaq added 1.5 percent for the week to end at 3,657.79. Both the S&P 500 and the Nasdaq snapped their two-week losing streaks. Among the key S&P sectors, materials were the best weekly performer, while consumer staples dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, fell to near 14. Read more

Any upcoming bounce will be corrective!

August 18. 2013

Market Review

Right in line with our recent call, U.S. stocks dropped significantly with all three major indexes logging their second weekly decline. For the week, the Dow Jones Industrial Average lost 344 points, or 2.2 percent, to close at 15,081.47, suffering its biggest weekly percentage drop and point loss of 2013. It was the blue-chip index’s worst weekly percentage slide since May 2012, and its largest point decline since June 2012. The S&P 500 slumped nearly 36 points, or 2.1 percent, in five trading days to end at 1,655.83, suffering its biggest weekly point drop of the year, but not its biggest percentage decline. The tech-heavy Nasdaq slid 1.6 percent for the week to close at 3,602.78. All key S&P sectors finished in the red for the week, dragged by utilities and consumer staples. The Chicago Board Options Exchange Volatility Index, or VIX, jumped 7.2 percent to 14.37 during the week and is up 21 percent from a low on Aug. 5. The equity volatility gauge is still down 20 percent for the year. Read more