Saturday 23 February 2019

Weekend update - US equity indexes

It was another bullish week for US equity indexes, with net weekly gains ranging from 0.2% (Trans), 0.6% (SPX, Dow), 0.7% (Nasdaq comp', NYSE comp'), to 1.3% (R2K).

Lets take our regular look at six of the main US indexes


The SPX climbed for a fourth consecutive week, the 8th of 9, settling +17pts (0.6%) to 2792, having broken a new cycle high of 2794. Underlying macd (blue bar histogram) cycle ticked higher for an eighth week, with zero sign of a turn.

Note the upper weekly bollinger at 2873, which is declining 20/25pts a week. In early March, it will be prime resistance within 2820/10s.

Nasdaq comp'

The Nasdaq climbed for a NINTH consecutive week, +55pts (0.7%) to 7527.


The mighty Dow climbed for a NINTH consecutive week, +148pts (0.6%) to 26031. The Oct'2018 historic high of 26951 is just 920pts (3.5%) higher.

NYSE comp'

The master index climbed for the 7th week of 9, +91pts (0.7%) to 12654, the highest settlement since early Oct'2018.


The R2K climbed for a NINTH consecutive week, settling +20pts (1.3%) to 1590. Note the upper weekly bollinger at 1635, another 3% higher.


The 'old leader' - Transports, climbed for a fourth consecutive week, the 8th week of 9, settling +25pts (0.2%) to 10593.


All six equity indexes saw net weekly gains.

The R2K is leading the way upward, with the Transports lagging.

YTD price performance:

The R2K is leading the way, currently net higher for the year by 17.9%. The Transports is +15.5%, with the Nasdaq comp' +13.4%. The Dow and NYSE comp' are both +11.6%, with the SPX +11.4%

Looking ahead 

There will be a light sprinkling of earnings, some econ-data, and more importantly, two appearances by the CEO of Print central.

T - HD, M, LNG, WW
F -

M - Wholesale trade, Dallas Fed manu'
T - Housing starts, Case-Shiller HPI, FHFA HPI, consumer con', Rich' fed

Powell is due Tuesday morning, for the six monthly report to the US Senate.

W - Factory orders, pending home sales, EIA Pet' report.

Powell is due Wed' morning, for the six monthly report to the US House fin' services committee, as chaired by Maxine Waters. It will be 'curious' to see what Alexandria Ocasio-Cortez has to say. Perhaps she should ask if the fed would consider QE of $10trn, to help fund the Green New Deal?

US President Trump is scheduled to begin a two day meeting (Hanoi, Vietnam) with North Korean leader Kim Jong Un, and that will no doubt capture huge mainstream attention.

T - Weekly jobs, GDP Q4 (2.4% est') , Chicago PMI (55.8 est')
F - Vehicle sales, pers' income/outlays (Dec' & Jan'), PMI/ISM manu', consumer sent'

*Thursday is end month, so expect more dynamic price action/volume. 
**Friday is the US deadline for raising tariffs, but it'll very likely be extended.
***The monthly jobs data (due March 1st) is delayed until March 8th.

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Have a good weekend
*the next post on this page will likely appear 5pm EST on Monday.