Bounce will be limited in price and time as market enters next phase!

January 31. 2016

Market Review

All three major U.S. averages finished the week with gains. For the week the Dow Jones Industrial Average advanced 2.3 percent to end at 16,466.30. The blue-chip index is down 5.5 percent for January, its worst start to a year since 2009. The index had its worst month since August. The S&P 500 added 1.8 percent for the week to finish at 1,940.24. The broad index is still down 5.1 percent for January, also its worst since 2009. The index had also its worst month since August. The Nasdaq advanced 0.5 percent from the week-ago close to 4,613.95. The Nasdaq plunged 7.9 percent in January, its worst month since May 2010. Most key S&P sectors finished higher, led by energy. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, held just above 20. Read more

S&P 500 has exactly reached our lower price target!

January 17. 2016

Market Review

As highlighted in our latest call, U.S. stocks finished another week with deep losses. The Dow Jones Industrial Average slumped 2.2 percent over the week to 15,988.08. The blue-chip average is down 8.3 percent for the year so far. The S&P 500 dropped also 2.2 percent for the week to finish at 1,880.29. The broad index is down 8 percent for the year so far. The Nasdaq lost 3.4 percent for the week to end at 4,488.42. The technology-laden index is down 10.4 percent year-to-date. All three major U.S. averages are more than 10 percent below their 52-week intraday highs, in correction territory. Among the key S&P sectors, materials were the worst performer and utilities the only gainer. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, briefly topped 30 for the first time since Sept. 1. Read more

Correction fully in force as S&P 500 ends its worst first week ever!

January 10. 2016

Market Review

In line with our latest call, U.S. stocks finished the week with deep losses and the major averages posted their worst week since 2011. For the week, the Dow Jones Industrial Average slumped 6.2 percent, or more than 1000 points, to 16,346.45. The S&P 500 suffered a weekly loss of 6.0 percent to finish at 1,922.02. The Nasdaq dropped 7.3 percent from the week-ago close to 4,643.63. This is the longest losing streak for the index since November 2011. All key S&P sectors finished in the red for the week, led by materials. Seven of the benchmark’s 10 main industries sank more than 5.5 percent this week. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, was near 27. Read more

Do not chase the market higher as tape confirmation is still missing!

January 03. 2016

Market Review

U.S. averages finished the last week of the year with losses. For the week, the Dow Jones Industrial Average dropped 0.7 percent to finish the year at 17,425.03. The blue-chip benchmark finished 2015 down 2.2 percent, for its first annual loss since 2008. The S&P 500 declined 0.8 percent for the week to close the year at 2,043.94, snapping a three-year winning streak. The broad index suffered a 0.7 percent loss for 2015. The Nasdaq lost 0.8 percent during the week to end the year at 5,007.41, the only index out of the three to post a 5.7 percent gain for the year. That gain makes it four years in a row the Nasdaq has posted a yearly gain, its longest winning streak since 2007. All 10 S&P sectors ended in the red for the week, dragged by energy. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, held near 18. Read more