Stock Markets Review

The S&P 500 dipped to 4170 twice in the last 2 weeks and settled yesterday at 4357. It is definitely trying to breakout from the bearish trend and the 4170 may act as support. However, per my model, it is still not out of the woods. Here is the short-term trend

The price has moved over both the 10-day and 20-day moving average. However, it is still below the 50-day. Also, the 10-day moving average is still below the 20-day moving average. The 10-day crossing over the 20-day would be my first indication that markets have turned for the short-term.

The longer-term indicators are still quite bearish. We just had what is known as a “death cross” earlier this week. This is when the 50-day moving average crosses below the 200-day moving average. That to me is a huge cautionary red flag.

The above is a comparative assessment of the S&P 500, the Dow Jones and the NASDAQ. We can see that the NASDAQ has suffered the most in this year down almost -20%. The Dow is the best of the 3 down -7.7% and the S&P 500 down -8.6%.

The Russell 2000 is down -9.6% and the Emerging Markets (EEM) is down -8%. So, the big loser has been the technology stocks which is down more than double any other market.

Does that mean that on the way back up technology will lead? Time will tell.