Saturday, July 25, 2009

The Stock Market Week - 7/24/2009

It was an up week for the major markets. The Standard & Poor's 500 Index reached 979.8, the highest level since November 5th 2008. For the week the Dow Jones Industrial Average gained 349.30 points or 3.99%. The Standard & Poor's 500 Index gained 38.88 points or 4.13%, while the Nasdaq Composite gained 79.35 points or 4.21%.

The Materials sector was the strongest sector (8.04%) last week followed by the Energy sector (5.66%). The Financial sector was the worst performing sector (2.31%) of the week followed by the Consumer Staples sector (2.51%).

The Basic Materials sector is the most overvalued sector followed by Technology, while Security Software & Svcs, Personal Computers, and Diversified Computer Sys are among the most overvalued industries. The Services sector is the most oversold sector followed by Healthcare, while Food Wholesale, Drugs Wholesale, and Electronics Stores are among the most oversold industries.

Weekly S&P 500 Winners
Gains/Loses(%) Symbol Company Sector
10.23% RSH RadioShack Corp. Consumer Discretionary
10.11% BDK Black & Decker Corp. Consumer Discretionary
9.72% PLD ProLogis Financials
Weekly S&P 500 Loosers
Gains/Loses(%) Symbol Company Sector
-8.26% MSFT Microsoft Corp. Information Technology
-6.79% BRCM Broadcom Corporation Information Technology
-5.50% FII Federated Investors Inc. Financials
Weekly S&P 500 Alerts
Stock Market Alerts Count
Downtrend Exhaustion 0
Downtrend Broken Resistance 5
Uptrend Support 2
Uptrend Exhaustion 19
Uptrend Broken Support 0
Downtrend Resistance 27
Oversold 1
Overbought 109


Standard & Poor's 500 Index Trend Analysis

In our previous publication on June 7th we wrote:
132 out of S&P 500 members have an Uptrend Support alert. If support holds and price does not breakdown the neckline, the uptrend may resume and we may see S&P above the 1000 mark pretty soon.
The Standard & Poor's 500 Index gained more than 12.7% since July 8th, and almost 47% since March 6th, reaching 979.8 on Friday, the highest level since November 5th, 2008. Daily Lane's Stochastic, Williams' % Range and Relative Strength Index are overbought/strongly overbought for all three major US indices. Weekly Williams' % Range is strongly overbought, signaling that market is moving too fast in a weekly time frame as well; and the rally may not be sustainable for a long period. 109 out of S&P 500 members are overbought, 51 stocks have daily MACD bearish divergence, indicating that the rally is already slowing down. The next resistance level for S&P 500 index is around 993. Considering overbought technical indicators, it would be difficult to break this resistance level; and chances are high that the stock market trend may reverse soon.

Standard & Poor's 500
Technical Stock Market Timing System
Presented by www.thegreedytrader.com Research Group.

Sunday, July 12, 2009

S&P 500 - head and shoulders pattern

The Stock Market Week - 7/10/2009

All the major US indices were negative. For the week the Dow Jones Industrial Average dropped -134.22 points or -1.62%. The Standard & Poor's 500 Index dropped -17.29 points or -1.93%, while the Nasdaq Composite dropped -40.49 points or -2.25%.

The Consumer Staples sector was the strongest sector (0.00%) last week followed by the Health Care sector (-0.43%). The Materials sector was the worst performing sector (-3.34%) of the week followed by the Energy sector (-3.23%).

The Healthcare sector is the most overvalued sector followed by Industrial Goods, while Drug Delivery, Medical Labs & Research, and Specialized Health Svcs are among the most overvalued industries. The Utilities sector is the most oversold sector followed by Consumer Goods, while Photographic Equip/Supls, Recreational Vehicles, and Business Equipment are among the most oversold industries.


Weekly S&P 500 Winners
Gains/Loses(%) Symbol Company Sector
8.49% HAR Harman Int'l Consumer Discretionary
5.45% HBAN Huntington Bancshares Financials


Weekly S&P 500 Loosers
Gains/Loses(%) Symbol Company Sector
-17.74% CIT CIT GROUP INC Financials
-5.00% NWSA News Corporation Consumer Discretionary
-4.90% VMC Vulcan Materials Materials


Standard & Poor's 500 Index Trend Analysis

In our previous publication on June 7th we wrote:
S&P and Nasdaq have an Uptrend Exhaustion alert. This alert indicates that the uptrend is exhausted and the trend is about to reverse. ... there is still too much bullish force for the stock to decline sharply. On the other hand, it is recommended to set a tight stop.
On June 11th S&P 500 index reached 956.23 making six months high. Since then the trend turned down and S&P lost almost 10% reaching 869.32 on Wednesday July 8th. The short term trend has formed the head and shoulders pattern. The right shoulder is completed and price is near the neckline.

Standard & Poor's 500
Technical Stock Market Timing System
Daily Williams' % Range indicator is oversold for all three major indices (S&P 500, Dow Jones, and Nasdaq). Daily Lane's Stochastic indicator is oversold for S&P and Nasdaq as well. 132 out of S&P 500 members have an Uptrend Support alert. If support holds and price does not breakdown the neckline, the uptrend may resume and we may see S&P above the 1000 mark pretty soon. If price breaks down the neckline, it would confirm the head and shoulders pattern. Next support level is near 825. Then price may retest the March's low level (666.78).

Presented by www.thegreedytrader.com Research Group.