Stock Market Highlights - Week 27
After retesting 17600, the stochastic (STO) indicators bounced off STO 20 and it is now working off oversold territory. As we had mentioned last week, "We shouldn't be surprised to see a retest of 17000 in the coming weeks". Lone behold, there was a retest. At least for now, there appears to be a decent bounce from that area. The STO indicates that the bounce may still continue. For the bulls, I'd like to see it go back to the 18010 area or 50 DMA. Otherwise, any sustained break below the 200 DMA suggests the bears are here to play.
The S&P 500 closed at 2076.78 on Thursday, July 2nd 2015 versus a week ago of 2101.49 on Friday, June 26th, 2015. This was a change of 1.2% decline. The S&P experienced a huge drop toward the 200 DMA, however stopped just short of it.
Just like with the DJIA, it appears that on the SPX, the STO levels are oversold and the small bounce was overdue. Whether or not this is sustainable or there will be further follow through remains to be seen. For the bulls, you'd like to it go back to the 50 DMA of 2104.48. Evidently any break above 2130, would be good for the bulls. We should watch for any break below the 200 DMA as an indication that the bears are here to play.