Courtesy of John Nyaradi.
Stocks put in a weak close to a quiet day in spite of mostly positive economic reports
Major U.S. stock indexes finished mixed after a quiet day and weak close. The Dow Jones Industrial Average (NYSEARCA:DIA) lost 2 points while the S&P 500 (NYSEARCA:IVV) ended mostly flat after giving up early day gains.
Standouts on the day were the Russell 2000 (NYSEARCA:IWM) which gained +0.44% and the Nasdaq 100 (NYSEARCA:QQQ) that added +0.2%.
Economic reports were mostly positive with Consumer Confidence rising to 64.5 from last month’s 55.2, the Richmond Federal Reserve index climbing to 3.0 from a previously reported zero, and the Dallas Fed’s manufacturing report improving to a -1.3 from last month’s -5.1.
On the negative side of the ledger, the Case Shiller Home Price Index showed continued declines in nationwide housing prices year over year as foreclosures continue to drag the market lower with 11 out of 20 major cities showing price declines of 1% or more.
Bottom line: On a technical basis, major indexes rest at significant resistance and need to breakout higher to sustain the uptrend, however, today’s close in the S&P 500 (NYSEARCA:IVV) managed to hold the all important 200 day moving average. Fundamentals remain mixed with concern over Europe offsetting improving conditions in the United States. No economic news tomorrow and with many traders away for the week, we can expect light volumes heading towards the end of the year.
Disclaimer: Wall Street Sector Selector actively trades a wide range of exchange traded funds (ETFs) and positions can change at any time.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
