US Stocks Finished Flat to Unchanged on Volatile Trade

US Stocks Finished Flat to Unchanged on Volatile Trade

US Stocks Finished Flat to Unchanged on Volatile Trade

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

  • The Bond market was closed in observance of Columbus Day in the US
  • Investors did not receive any US economic data Monday
  • The S&P 500 tested its Key 50-Day MA

The US stock market closed a volatile day of trading mixed. The S&P 500 was down as much as 0.8% Monday, but rebounded in the afternoon to reclaim its 50-Day MA at 2878.47, which it had breached shortly after the open. The benchmark index finished just slightly lower, closing at 2884.43.

As for the other major averages, the tech-heavy NAS Comp under-performed for the 3rd day running, losing 0.7%; the small-cap Russell 2000 finished the day with a slim loss of 0.2%; and the blue-chip DJIA outperformed, tacking on 0.2%.

Concerning headlines overseas weighed on US markets early.

In China, Secretary of State Mike Pompeo traded jabs with China’s foreign minister, Wang Yi, regarding trade disputes. Mr. Yi accused the United States of meddling with domestic affairs, and Secretary Pompeo retorted that the 2 simply had a “fundamental disagreement.”

In Italy, the government continued its feud with the EU over its budget deficit plan, with Italy’s Deputy Minister Matteo Salvini referring to two EU leaders as “Enemies of Europe.”

The Top-weighted information technology sector gave up ground Monday, closing at the bottom of the S&P 500 sector standings with a loss of 1.2%. The group is now down 3.4% MTD, trimming its 2018 gainer to 15.5%. Investors continue to take profits from the highly-valued growth stocks that have helped drive the group higher this year.

Conversely, the real estate (+1.3%), consumer staples (+1.3%), and utilities (+0.8%) sectors finished on Top Monday, and the highly-influential financial sector (+0.6%) outperformed.

In corporate news

Google’s parent company Alphabet (GOOGL) announced that account information of 500,000 of its users was exposed due to a bug, and General Electric (GE) was upgraded to ‘Overweight’ from ‘Equal Weight’ at Barclays. Alphabet shares lost 0.7%, while GE shares rose 3.3%.

Looking head

The Q-3 earnings season will begin Friday with financial giants JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) scheduled to report their Quarterly results.

Investors did not receive any economic data Monday.

Monday, the major US stock market indexes finished at: DJIA +39.73 at 26486.78, NAS Comp -52.30 to 7736.14, S&P 500 -1.14 to 2884.27

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

  • NAS Comp +12.1% YTD
  • S&P 500 +7.9% YTD
  • DJIA +7.2% YTD
  • Russell 2000 +6.1% YTD

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

Date Symbol Price Technical Analysis Support Resistance
8 October 2018 QQQ 179.33 Neutral (-0.09) 179.31 180.68
8 October 2018 DIA 264.86 Very Bullish (0.50) 263.50 267.51
8 October 2018 SPY 288.43 Neutral (0.15) 287.18 290.91

 

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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