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| Dow Jones (Photo credit: caseorganic) |
At Friday’s close, the Dow was off 17 points at 13,579, the S&P 500 fell fractionally to 1,460, and the Nasdaq rose 4 points to 3,180. The NYSE traded 1.8 billion shares and the Nasdaq crossed 924 million. Advancers were ahead of decliners on both exchanges by about 1.5-to-1. For the week, the Dow was off 0.1%, the S&P 500 fell 0.4%, and the Nasdaq was down 0.1%.
On Thursday, Sept. 13, the Dow industrials and other major indices broke from a six-month trading pattern. The break was no doubt in large part due to the Fed’s announcement of QE Infinity, which promised the Fed’s support “even into a recovery.”
By Friday, the advance from the breakout had taken the Dow to an extremely overbought level. Thus, some profit-taking was due, and the Dow closed modestly lower accompanied by huge volume on a quadruple witching day.
The MACD indicator is still very overbought, and so a further retracement is probably due with support at the breakout line at 13,275. ... Continue to read.
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