Further to my last weekly market update, this week's update will look
at:
- + 6 Major Indices
- + 9 Major Sectors
- + 3 Ratio Charts of the SPX:VIX, RUT:RVX, and NDX:VXN
- + Ratio Chart of AAPL:NDX
6 Major Indices
Trading was mixed in the Major
Indices during this 3-day week, as some closed slightly higher, and
some closed lower, as shown on the Weekly charts and the 1-Week
percentage gained/lost graph below.
9 Major Sectors
Trading was also mixed in the
Major Sectors during this 3-day week, as some closed higher,
and some closed lower, as shown on the Weekly charts and the 1-Week
percentage gained/lost graph below.
In
general, it would appear that this week's gains vs. losses in specific
Indices and Sectors can be primarily attributed to the devastating effects
caused by Hurricane Sandy. Most of the Indices and Sectors are trading at/near
their mid-Bollinger Band on the Weekly timeframe. This week's trading can be
described as volatile, at best. With the U.S. elections coming up on Tuesday,
bringing with it more volatility and uncertainty, I can only suggest monitoring
price action on these around their mid-Bollinger Band in order to gauge relative
strength (above) or weakness (below). Generally speaking, those Indices and
Sectors currently above the mid-Bollinger Band are outperforming those below.
Whether this continues next week, or in the weeks ahead, remains to be
seen.
3 Ratio Charts of the SPX:VIX, RUT:RVX, and NDX:VXN
On a
Daily timeframe, I'm watching for a break and hold below the
last swing low (on the following three ratio charts comparing the SPX,
RUT, and NDX Indices with their respective Volatility Indices)
to confirm that further selling/weakness is occurring in the SPX, RUT, and NDX
on accelerating volatility momentum. In all three, the Momentum Indicator is
still in bearish territory below the zero level and is suggesting further
weakness ahead for the SPX, RUT, and NDX, as they were unable to hold onto
Thursday's gains and as price closed, once again, below near-term resistance
levels.
Ratio Chart of AAPL:NDX
I've added a Daily ratio
chart of AAPL:NDX, as well. I've discussed AAPL in
several posts recently, most notably in the first one on October 23rd. I've been watching for a break below its
near-term support level, and that occurred in Friday's action. Momentum is
accelerating to the downside and is well below the zero level. Further action
below the zero level is subject to bearish influences of more weakness and
volatility. It's one that I'll continue monitoring over the days/weeks ahead
inasmuch as it's such an influential stock in the Nasdaq 100, S&P 500, and
S&P 100 Indices.
P.S. Just a reminder that Daylight Savings ends November
4th.
Enjoy your weekend
and good luck next week!
N.B. I'll be posting a number of charts
showing support and resistance levels for a variety of instruments during the
course of the weekend, so please feel free to check my Blog for that post.
