Investors Look for Reasons to Take Markets Higher
Dow Jones Industrial Average climbs as investors love U.S. stocks.
The Dow Jones Industrial Average (NYSEARCA:DIA) gained 0.3 percent for the week while the S&P 500 (NYSEARCA:SPY) gained 0.1 percent. The Nasdaq (NYSEARCA:QQQ) dropped 0.5 percent as Apple (NASDAQ:AAPL) lost 1.1 percent for the week. The Russell 2000 (NYSEARCA:IWM) fell 2.1 percent. Big name stocks like Apple, Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA) all fell from the previous Friday’s close.
On My Stock Market Radar
So the current situation is that the major indexes have put in recent tops and then failed at breaking above them. Furthermore, the Russell 2000 and Nasdaq are generally market leaders and now start to show weakness. The Dow remains on a point and figure “sell” signal and has put in an all too obvious double top formation.
A glance at the S&P 500 chart above shows us that the index is near overbought levels with momentum declining with its price declining and near the outer limit of the upper Bollinger Band. A quick glance to the past on this chart shows that over-extensions like this one usually result in declines to the lower band.