At first glance, it seems that not much went on this week in the market. Oftentimes, there is a calm before the storm.
Today, the Standard & Poor's 500 Index opened @ 1184.74. It went nowhere for most of the day. The high of the day was 1185.46. The low of the day was 1179.70. Again, the low of the day dipped below the rising 13-day moving average. The close was 1183.26. Note that the close (1183.26) was lower than the open (1184.74). This lower close means that selling pressure was greater than buying pressure for the day.
For the week, things got off to a rock and roll start Monday morning. The S&P soared within the first 15 minutes of the trading day to 1196. I had mentioned 1196 to "Shelby" as a probable stopping point for Index. Well, 1196 stopped the S&P advance dead in its tracks. From Monday morning the market dropped to a low of 1171.70 for the week and bounced up to a 50% retracement level or 1183.26. The market is now primed to drop further. Oftentimes, a bounce will go up to 50% of the drop before continuing to head further downwards.
The open for the week was 1184.74. The high was 1196.14. The low was 1171.70. The close was 1183.26. The weekly close (1183.26) was lower than the weekly open (1184.74). This lower close means that selling pressure was greater than buying pressure for the week. On Wall Street, there is an old adage that Bulls die hard. We are witnessing the last gasp of this advance in the S&P.
Next week should be interesting!
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