Hello my Investors, Traders and Reader Friends. Yesterday, the market closed with mixed results. The DJ-30 climbed 0.12%, the SP-500 increased 0.07% and the Nasdaq Comp. fell 0.11%. Also, the volume was slightly smaller than the previous day and similar to the daily average of the last 78 days.
However, these numbers hide a situation not so good. Especially in regard to small and medium companies. For example, in the DJ-30, 19 stocks ended the day with gains while 11 showed losses. On the Nasdaq-100, these figures were: 38 rose and 62 fell. In the SP-500: 203 rose and 297 fell. But the most extreme case is seen in the Russell-2000: 600 rose and 1,400 fell!!!.
From the technical point of view, be appreciated some deterioration in the market, especially in a day frame. In the four most representative market indexes (DJ-30, Nasdaq-100, SP-500 and Russell-2000), we see that MACD (one of our key internal indicators) has moved into negative territory. Likewise, the indicator Stochastic also shows a reduction in almost all cases.
I think it is important to mention this deterioration is not significant yet, but confirms a change of character in the market. All these indices are approaching the level of Simple Moving Average 18 days, it would be a first level of market support. It is very likely to see the market or any of these indices to challenge this level. The Russell-200 is just a point of this first level of support. Probably today we will see the definition in this index.
As expected, very few stocks yesterday showed a good pattern. One of those who experienced a good performance (but not spectacular) was Smith &Wesson Holding Corp. (SWHC). This stock closed yesterday at US$5.43, up 3.43%. Its volume was 2 millions of shares, three times its daily average. SWHC has a market cap. of US$ 352 Millions and an EPS of -0.81. Finally, this company has 64.87 Millions of shares, of which 53% is held by institutional Investors.
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