Saturday 21 September 2019

Weekend update - US equity indexes

It was a bearish week for US equity indexes, with net weekly declines ranging from -3.3% (Trans), -1.2% (R2K), -1.0% (Dow), -0.7% (Nasdaq comp'), -0.5% (SPX), to -0.2% (NYSE comp'). Near term outlook threatens cooling of 2-3%.

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


The SPX broke a new multi-month high of 3021.99, but settled -15pts (0.5%) at 2992. Weekly price momentum ticked higher for a fourth week, but remains fractionally negative. S/t outlook threatens downside to tag the upper end of secondary gap to the 2920s, and that would likely equate to VIX near the key 20 threshold. Right now, I don't see any price action <2900 in the near term.

Nasdaq comp'

The Nasdaq settled -59pts (0.7%) to 8117. Weekly price momentum remains fractionally negative.


The mighty Dow cooled by -284pts (1.0%) to 26935. Weekly price momentum still managed to turn positive though. Note the July historic high of 27398.

NYSE comp'

The master index settled -30pts (0.2%) to 13093. Weekly price momentum continues to tick upward.


The R2K settled -18pts (1.2%) to 1559. Price has notably reversed on the underside of m/t rising trend, and it leans s/t bearish. First support in the 1520s.


The 'old leader' - Transports, settled -359pts (3.3%) to 10454. Weekly support in the 10300s.


All six of the US equity indexes saw net weekly declines.

The two leaders - Transport and R2K, lead the way lower, whilst the NYSE comp' was most resilient.

YTD price performance:

The Nasdaq comp' continues to lead for the year, currently +22.3%. The SPX is +19.4%, R2K +15.7%, and the Dow +15.5%. The NYSE comp' +15.1%, with the Transports lagging at +14.0%.

Looking ahead

Earnings: NIO, BB, NKE (Tues'), KBH (Wed'), ACN, CAG, MU (Thurs')


M - PMI comp'
T - Case-Shiller HPI, FHFA HPI, consumer sent', Rich' fed
W - New home sales, EIA Pet'
T - Weekly jobs, Q2 GDP (third/final print), intl' trade, pending home sales
F - Durable goods, Pers' income/outlays, consumer sent'

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