Weekly Wrap: Stocks Dip From Record Highs

Weekly Wrap: Stocks Dip From Record Highs

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

The US stock market ended a record-setting week on a lower note. The S&P 500 slipped 0.4%, narrowing this week’s gainer to 1.0% while the DJIA -0.4%) and NAS Comp (-0.5%) recorded comparable losses, trimming their respective week-to-date gains to 0.6% and 1.7%.

The final session of the week began on a modestly lower and there was not enough conviction to turn things around.

President Trump signed the Hong Kong Human Rights and Democracy Act into law on Wednesday evening, prompting some angry rhetoric, but no concrete response from Chinese officials, but the overall response was muted.

Investor participation was very limited, as fewer than 500-M/shares changed hands at the NYSE floor, well below the 200-Day Average of 861 mln.

All 11 sectors ended the day in the Red.

The energy sector (-1.0%) spent the day at the bottom of the leaderboard but was able to climb off its low ahead of the close. The sector lost 1.6% for the week, pressured by significant weakness in the price of crude oil. The energy component fell more than 4.0% to $55.52 bbl, sliding back below its 50-Day MA at 55.63.

OPEC and OPEC+ producers will meet in Vienna next week, but there are concerns that they will not agree to lower output.

The consumer discretionary (-0.8%) sector was the 2nd weakest performer, as retailers trailed the broader market after showing relative strength earlier this week.

The SPDR S&P Retail ETF (XRT 44.68, -0.34, -0.8%) registered its 1st loss in more than a week after tapping a 3-wk high Wednesday.

Treasuries showed modest losses when the stock market closed with the 10-yr yield up a basis point at 1.78%.

Investors did not receive any data Friday while Monday’s economic news will be limited to the 10a ET release of October Construction Spending, and the ISM Manufacturing Index for November.

Friday, the major US stock market indexes finished at: DJIA -112.59 at 28051.32, NAS Comp -39.70 at 8665.46, S&P 500 -12.65 at 3140.98

  • NAS Comp+30.6% YTD
  • S&P 500 +25.3% YTD
  • Russell 2000 +20.5% YTD
  • DJIA +20.3% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish to Very Bullish for the week and month ended 29 November 2019

Have a terrific Holiday weekend.

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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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