Understanding This Market Into the Q’s End

Understanding This Market Into the Q’s End

$DIA, $SPY, $QQQ, $RUTX, $VXX

At the close: DJIA -142.22 at 26807.77, NAS Comp -118.84 at 7993.62, S&P 500 -25.18 at 2966.64

US stocks fell Tuesday, as investors shunned risk following a decline in consumer confidence, and a hard-lined speech from President Trump. The S&P 500 (-0.8%) and DJIA (-0.5%) declined less than 1%, while the NAS Composite (-1.5%) and Russell 2000 (-1.6%) underperformed on weakness in the technology and energy stocks. 

  • NAS Comp +20.5% YTD
  • S&P 500 +18.3% YTD
  • DJIA +14.9% YTD
  • Russell 2000 +13.7% YTD

The Technical Outlook

Stocks have been locked in a multi-day pullback/consolidation mode in context of early September strength.  The countdown to Q-3’s end, so the phenom of “window-dressing” portfolios by boosting winners and selling losers has kicked in. 

Overall, it is critical for the US major indices and Sectors to maintain their Bullish posture above their August resistance and 50-Day MA’s.  As long as that remains in place, then the path of least resistance is North. 

Note the DJIA and S&P 500 are still approximately 1.5% from their YTD highs.  The NAS Comp not far behind, sitting within 2.5% of its YTD highs.

Gold/Silver (GLD, SLV) caught some bids above the prior week’s “pullback highs,” suggesting the complex is beginning another leg higher above their rising 50-Day MA’s.

Sentiment/Internals have been working off earlier September “overbought” readings, reflecting more of a Neutral/Bullish tone with current market conditions. 

Support and Resistance Table for Tuesday, 24 September 2019

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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