Stock Market Indices Review for Week 26 in 2015

Jun 26, 2015 -

Stock Market Highlights - Week 26

- EBay announces date of PayPal spinoff - July 17th.
- WTI closed 6/26 at $59.63 and Crude Oil $63.26.
- Nike soars after crushing earnings forecast at $0.98/share vs $0.83/share
- Personal consumption expenditures rose 0.9% in May.
- Next Tuesday is the deadline for the Greek government to repay the IMF 1.5B euros.

The Dow Jones Industrial Average (DJIA) closed at 17,946.68 on Friday, June 26th 2015. After failed attempts to break through the 18,300+ barrier via an ascending triangle trading pattern, the DJIA is now in a trade range and continues to bounce between 17,700 and 18,200. Until we can see a clear break either to the upside or the downside, this remains a stock picker's market. 

After retesting 18,200, the stochastic (STO) indicators bounced off STO 80 and it is now working off overbought territory. The STO indicates that there is still some selling off that could occur. We shouldn't be surprised to see a retest of 17,700 in the coming weeks. 

The S&P 500 closed at 2101.49 on Friday, June 26th, 2015. The S&P was posed to break out of its ascending triangle pattern. However, it stopped short around 2,130. From then on beginning in June, it peeled back into a 60 point trading range from 2070 to 2130. This is nearly similar to that of the DJIA chart above.

Just like with the DJIA, it appears that on the SPX, the STO levels have not been completely exhausted and there is still more selling to occur. For the bulls, you'd like to see a break above 2,130. The more times it tries and fails to break through, the more likely it is that the bears will take control. However, right now it looks more or less neutral. 

The Nasdaq (COMPQ) closed at 5080.5 on Friday, May 26th 2015. The strongest of the three indices is the COMPQ. It made a new high this week, however was quickly sold. Though the upward trend remains intact. Until we see a break below the 50 DMA, this is an index that is moving upward. 

As with the SPY and the DJIA, we are seeing the overbought indicators working themselves off of that via a pullback. Friday's volume was significant however it held above the 20 DMA. Look to see it retest the 50 DMA before it bounces again. 

Fitbit, Inc. (FIT) is a company that designs and manufactures health and fitness trackers and provides online dashboard and mobile apps, data analytics, motivational and social tools, personalized insights, and virtual coaching through customized fitness plans and interactive workouts. Just last week, FIT IPOed at a price of $20 per share. IT opened closer to $30 a share. After reaching $40 per share, it cooled down and appears to have pulled back to the magic Fibonacci extension (61.8%). On a pure bounce play, we entered in at $34.61, with a stop just below today's close. The target is a retest of the high. 
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