US Market Indexes Test Key Support and Reversed Again

US Market Indexes Test Key Support and Reversed Again

US Market Indexes Tested Key Support and Reversed Again

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

The major US stock market indexes for the 5th time in 6 sessions Wednesday to test Key support and bounced.

The S&P 500 finished lower by 0.8% after being down as much as 1.3% intra-day. The DJIA and the NAS Comp lost 0.5% and 1.2%, respectively.

The Turkish Lira extended Tuesday’s rebound though, adding 6.8% Vs USD, after diving  25% Friday and Monday combined.

The US Dollar (.DXY) Index finished flat on the day, near its 1-year high.

Word the Turkey is discussing its issues with the United States reversed the decliner into the close.

NYMEX WTI Crude futures dropped 3.0% to 65.07 bbl after the Energy Information Administration’s (EIA) weekly inventory report showed an unexpected build of 6.8-M bbl.

The drop in Crude Oil prices weighed on the energy sector (-3.5%), which lagged the 10 other S&P groups.

Cyclical sectors underperformed in general, with consumer discretionary (-1.2%), materials (-1.6%), and technology (-1.1%) all losing more than the S&P 500.

The countercyclical consumer staples (+0.4%), utilities (+0.8%), and telecom (+0.7%) sectors finished in the Green, and real estate (+0.9%) also outperformed.

US Treasuries rallied on the risk-off sentiment, sending yields lower across the curve. The yield on the 2-yr T-Note slipped 2 bpts to 2.61%, and the yield on the benchmark 10-yr T-Note gave up 5 bpts, falling to 2.85%.

The CBOE Volatility Index spiked 11.6% to 14.85, a new 6-week high, VIX is still very low in here.

Looking ahead

Thursday, investors will receive July Housing Starts and Building Permits, weekly Initial Claims, and the Philadelphia Fed Index for August on Thursday.

Wednesday, the major US stock market indexes finished at: DJIA -137.51 at 25162.41, NAS Comp -96.78 at 7774.13, S&P 500 -21.59 at 2818.11

Volume: Trade on the NYSE came in at 797-M/shares exchanged

  • NAS Comp+12.6% YTD
  • Russell 2000 +8.8% YTD
  • S&P 500 +5.4% YTD
  • DJIA +1.8% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
15 August 2018 QQQ 179.23 Neutral (0.11) 177.80 180.68
15 August 2018 DIA 251.76 Neutral (0.12) 250.75 253.23
15 August 2018 SPY 281.78 Neutral (0.17) 279.39 283.10

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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