It was a bearish week for US equity indexes,
with net weekly declines ranging from -0.5%
(SPX), -0.6% (Nasdaq comp'), -0.7% (Dow, NYSE comp'), -1.3% (R2K), to
-1.6% (Trans). Near term outlook leans toward further downside.
Lets take our regular look at six of the main US indexes (monthly candle charts)
sp'500
For the week, the SPX saw an intra low of 2822, but settled -0.5% to 2918. There was a break of m/t rising trend that stretches back to the Dec'2018 low of 2346.
More broadly, monthly price momentum has turned fractionally negative. A failure to break AND hold above the key zero threshold is pretty bearish, and it threatens major problems into the autumn.
However, equity bears can't get confident until a monthly settlement under the key 10MA at 2812. Note the massive technical/cyclical divergences that stretch back to Jan'2018, which should be at least a mild concern to those who think everything is fine.
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Nasdaq comp'
The Nasdaq comp' saw a net weekly decline of -0.6% to 7959. More broadly, monthly price momentum remains negative.
Dow
The mighty Dow saw a net weekly decline of -0.7% to 26287. Note the massive technical/cyclical divergences that stretch back to Jan'2018, as monthly price momentum has remained negative since Oct'2018.
NYSE comp'
The NYSE comp' settled -0.7% to 12748. Monthly price momentum remains negative, as the master index has been broadly stuck since Jan'2018. Gundlach is no doubt watching this index especially closely.
R2K
The second market leader settled net lower for the week by -1.3% to 1513. The R2K is notably under the monthly key 10MA, as price momentum remains very negative.
Trans
The 'old leader' - Transports, cooled for a second week, net lower by -167pts (1.6%) to 10207. More broadly, its notable that the tranny is back under the monthly 10MA.
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Summary
All six of the main equity indexes settled net lower for the week. The two leaders - Trans/R2K, lead the way lower, with the SPX most resilient.
More broadly, all six indexes are currently net lower for the month. All six indexes have negative monthly price momentum. The Trans and R2K are currently trading under their respective key monthly 10MA.
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Looking ahead
Another busy week is ahead. In addition to earnings and econ-data, the market will be keeping an eye on the HK/China situation.
Earnings:
M - GOLD, TCEHY
T - JD, TLRY
W - M, CSCO, CGC
T - BABA, WMT, JCP, NVDA, AMAT
F - DE
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Econ-data:
M - US T-budget (2pm)
T - CPI
W - Import/export prices, EIA Pet' report
T - Weekly jobs, phil' fed, retail sales, empire state, product/costs, indust' prod', bus' invent', housing market index' EIA NG report. US Fed balance sheet.
F - Housing starts, consumer sent'. *OPEX*
*As Friday will be opex, expect considerable chop on higher volume.
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Have a good weekend
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*the next post on this page will likely appear 5pm EDT on Monday.
