March 28, 2024

Global unrest helps fuel market decline

Index & Sector performance 7/17/14

The Market:

Broad based sell off today saw all 5 (S&P 500 equal weight index (RSP) added today) major indices from the WSC Scoreboard finish over 1% lower except the Dow (DIA) which managed to only lose 0.85%.  No surprise leading the way to the downside was again the Russell 2000 (IWM) which is now solidly down for the year and underperforming the S&P 500 (SPY) by 8.5% and the NASDAQ (QQQ) by 10%.

The double top in the IWM which we started discussing over a week ago is now more pronounced and as a reminder resides around $121.  In the short term, the IWM appears to be at or reaching oversold territory so we would expect to see some sort of rally coming soon.  Our current opinion is that traders may want to look at the IWM for long trade opportunities due to the oversold conditions but investors may want to hold off as fthe index could be vulnerable to much more downside.

Tomorrow, Friday, will be an interesting session as traders have to decide how they want to be positioned over the weekend and it is also Options Expiration which could add volatility.

All sectors on the WSC Scoreboard finished the day lower with yesterday’s leader, Energy (XLE), the largest loser finishing the day down 1.61% while Materials (XLB) performed the best finishing down only 0.42%.  Looking over the Scoreboard we also see that the Consumer Discretionary (XLY) sector is very close to turning down YTD.  So far only the Retail (XRT) sector is lower for the year.

Economic data today was mixed as Building Permits and Housing Starts disappointed while the Unemployment Claims and Philly Fed Manufacturing Index beat.

Tomorrow’s featured data is the University of Michigan Consumer Sentiment Report.

 

Economic Calendar Week of 7/14/14

 

Reporting EPS 7/18/14 Pre-Market:

Companies Reporting EPS 7/18/14 pre-market


Analyst Comments:

Upgrades 7/17/14

Downgrades 7/17/14

Initiations 7/17/14

Price Target Changes 7/17/14

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