The U.S. stock market has been threatening a corrective decline for months, and it came to fruition last week with massive selling on Thursday and Friday. The Nasdaq 100 led the decline, falling 7.4%, but all major indices closed sharply lower for the week and slid into negative territory for 2015. Every sector of the S&P 500 ended in the red, led by energy, down 8.5%, and technology, off 6.7%.    #-ad_banner-#In fact, the only sector to do well recently has been utilities, which lost only 1.1% last week. I first mentioned this group as a potential… Read More

The U.S. stock market has been threatening a corrective decline for months, and it came to fruition last week with massive selling on Thursday and Friday. The Nasdaq 100 led the decline, falling 7.4%, but all major indices closed sharply lower for the week and slid into negative territory for 2015. Every sector of the S&P 500 ended in the red, led by energy, down 8.5%, and technology, off 6.7%.    #-ad_banner-#In fact, the only sector to do well recently has been utilities, which lost only 1.1% last week. I first mentioned this group as a potential sector to overweight this quarter in the Aug. 3 Market Outlook. Through Friday’s close, utilities had risen by 5.4% over the past month. It was the only sector to post a gain during this period, while outperforming the S&P 500 by a whopping 12.4 percentage points. Multiple Price Targets Met Last Week Two of my recent downside targets were hit during last week’s collapse. The London FTSE 100 fell through the 6,550 level first mentioned in the June 8 Market Outlook. And the sell-off in the small-cap Russell 2000 took it through the 1,175 level, which I pointed to in… Read More

The major U.S. indices managed to finish last week fractionally higher, led by the S&P 500, which gained 0.7%. However, nothing has been resolved as the broader market index, as well as the bellwether Dow industrials and PHLX Semiconductor (SOX) index, continue to hover just above major support levels.  S&P 500 2,077, Dow 17,342 and SOX 630 are major support levels that represent an important inflection point from which the next significant move, either up or down, is likely to begin.   Two weeks ago, I first stated that utilities were on my radar as a potential sector… Read More

The major U.S. indices managed to finish last week fractionally higher, led by the S&P 500, which gained 0.7%. However, nothing has been resolved as the broader market index, as well as the bellwether Dow industrials and PHLX Semiconductor (SOX) index, continue to hover just above major support levels.  S&P 500 2,077, Dow 17,342 and SOX 630 are major support levels that represent an important inflection point from which the next significant move, either up or down, is likely to begin.   Two weeks ago, I first stated that utilities were on my radar as a potential sector to overweight this quarter. And last week, I pointed out a bullish chart pattern in the Utilities Select Sector SPDR ETF (NYSE: XLU) that targeted a 4.8% rise to $46.50.  XLU jumped 2.7% last week and appears to be on track to meet that target, which is 2% above Friday’s close. The chart also shows that XLU is starting to edge above its 200-day moving average at $44.99. A sustained rise above this widely watched major trend proxy would suggest that a major bullish trend change is emerging in the ETF, which would potentially set the stage for… Read More

Just a week after successfully rebounding from its 200-day moving average, the S&P 500 collapsed right back into this widely watched major trend proxy at the end of last week for the third time since late June.   The index’s inability to sustain a rally from a major support level like this is problematic. It suggests a lack of bullish conviction by investors and may be the precursor to the first real corrective decline in years.   #-ad_banner-# All major U.S. indices closed in the red last week, led lower by the small-cap Russell 2000, which lost 2.6%. Two weeks… Read More

Just a week after successfully rebounding from its 200-day moving average, the S&P 500 collapsed right back into this widely watched major trend proxy at the end of last week for the third time since late June.   The index’s inability to sustain a rally from a major support level like this is problematic. It suggests a lack of bullish conviction by investors and may be the precursor to the first real corrective decline in years.   #-ad_banner-# All major U.S. indices closed in the red last week, led lower by the small-cap Russell 2000, which lost 2.6%. Two weeks ago, I pointed out an emerging bearish chart pattern in this market-leading index that continues to target a decline to 1,175, which is 2.6% below Friday’s close. Defensive Utilities Stand Out In last week’s report, I said utilities were on my radar screen as a potential sector to overweight this quarter. It was actually the only sector of the S&P 500 to post a positive close last week, gaining 0.9%. Utilities now appear poised for more strength and relative outperformance.  The chart of the Utilities Select Sector SPDR ETF (NYSE: XLU) displays a bullish inverse head-and-shoulders pattern that emerged as… Read More

For the fourth time since February, the bellwether S&P 500 tested and successfully rallied last week from its 200-day moving average — a widely watched major trend proxy currently situated at 2,068 — to lead yet another broader market rebound. Last week’s rally was again driven by the Pavlovian “buy the dip” mentality that investors have been conditioned with following years of quantitative easing by the Federal Reserve. While QE officially ended in October, as long as this strategy continues to work, investors are likely to keep doing it. Meanwhile, the S&P 500 continues to ping-pong within a tight, 4%-to-5%… Read More

For the fourth time since February, the bellwether S&P 500 tested and successfully rallied last week from its 200-day moving average — a widely watched major trend proxy currently situated at 2,068 — to lead yet another broader market rebound. Last week’s rally was again driven by the Pavlovian “buy the dip” mentality that investors have been conditioned with following years of quantitative easing by the Federal Reserve. While QE officially ended in October, as long as this strategy continues to work, investors are likely to keep doing it. Meanwhile, the S&P 500 continues to ping-pong within a tight, 4%-to-5% trading range. Despite a lot of choppy trading and historically large daily trading ranges, the index closed July up only a meager 2.2% for the year. #-ad_banner-# All sectors of the S&P 500 ended in positive territory last week except for beleaguered energy, which lost 0.2%. Leading last week’s rebound was defensive utilities, which gained 3.9%, while quietly becoming the best-performing sector of the past month.   Utilities are now on my radar screen as a potential sector to overweight this quarter. However, I want to see a little more price strength amid some positive asset flows… Read More

The title of last week’s Market Outlook posed the question: “Could Complacency Reverse Last Week’s Gains?” The answer was a resounding, “Yes.” One week after aggressively rebounding from the major support levels I identified earlier in July, all major U.S. stock indices collapsed. The S&P 500 fell 2.2%, the Dow lost 2.9%, the Nasdaq 100 declined 2.3% and the Russell 2000 dropped 3.2%. #-ad_banner-# All sectors of the S&P 500 closed down for the week, led lower by economically sensitive materials, energy and industrials, which warns of a global slowdown that could put even more downside pressure on… Read More

The title of last week’s Market Outlook posed the question: “Could Complacency Reverse Last Week’s Gains?” The answer was a resounding, “Yes.” One week after aggressively rebounding from the major support levels I identified earlier in July, all major U.S. stock indices collapsed. The S&P 500 fell 2.2%, the Dow lost 2.9%, the Nasdaq 100 declined 2.3% and the Russell 2000 dropped 3.2%. #-ad_banner-# All sectors of the S&P 500 closed down for the week, led lower by economically sensitive materials, energy and industrials, which warns of a global slowdown that could put even more downside pressure on world stock markets in the weeks ahead. Nasdaq Fails at Tech Bubble Highs In last week’s Market Outlook, I pointed out that my 4,600 upside target in the tech-heavy Nasdaq 100 (NDX) was met on July 17. I also warned that corrective declines often begin once initial price targets have been met as investors take profits.  The big question, I said, was how much upside was left. I noted that one key to answering that question was whether the Nasdaq Composite, the Nasdaq 100’s broader cousin, could remain above secular overhead resistance at 5,133, which was the tech bubble high… Read More

The major U.S. stock indices aggressively rebounded last week from the underlying support levels I pointed out in the July 6 and July 13 issues of Market Outlook. The rally was led by the tech-heavy Nasdaq 100, which gained 5.5% and is now up 10% for the year, and was fueled by news that China appears to have averted its major stock market crash while the eurozone is on its way to kicking the Greek default “can” further down the road. #-ad_banner-# Last week’s rally was led by the technology and financials sectors, which gained 4.8% and 3%, respectively. In… Read More

The major U.S. stock indices aggressively rebounded last week from the underlying support levels I pointed out in the July 6 and July 13 issues of Market Outlook. The rally was led by the tech-heavy Nasdaq 100, which gained 5.5% and is now up 10% for the year, and was fueled by news that China appears to have averted its major stock market crash while the eurozone is on its way to kicking the Greek default “can” further down the road. #-ad_banner-# Last week’s rally was led by the technology and financials sectors, which gained 4.8% and 3%, respectively. In fact, all sectors of the S&P 500 posted gains except for energy and materials, which both remain under pressure within a sluggish global economy. The big question this week, and the focus of today’s Market Outlook, is whether last week’s rally is sustainable.  Nasdaq 100 Meets Our Upside Target  Two weeks ago, in the July 6 Market Outlook, I pointed out that the bellwether S&P 500 was testing major underlying support at its 200-day moving average, a widely watched major trend proxy, and said this was where its larger bullish trend should resume if still… Read More

The major U.S. stock indices finished last week essentially unchanged on the heels of two consecutive weeks of declines. My work suggests the stock market is within weeks of a significant bottom.  But the question is whether that bottom occurs now or if there is one more shoe to drop first. This week, that “shoe” is Greece and China, more specifically, whether a bailout deal for Greece can be finalized and whether the Chinese government can stem the tsunami in that country’s stock market, which saw the Shanghai Composite collapse by 35% over the past month. These issues… Read More

The major U.S. stock indices finished last week essentially unchanged on the heels of two consecutive weeks of declines. My work suggests the stock market is within weeks of a significant bottom.  But the question is whether that bottom occurs now or if there is one more shoe to drop first. This week, that “shoe” is Greece and China, more specifically, whether a bailout deal for Greece can be finalized and whether the Chinese government can stem the tsunami in that country’s stock market, which saw the Shanghai Composite collapse by 35% over the past month. These issues will have a big influence on whether the U.S. market begins its next leg higher now or later. [Editor’s note: On July 8, as Chinese stocks plummeted 5.9% and U.S. markets followed them down, one trader closed two positions for annualized returns of 1,205% and 2,111%. This same trader believes that was the day an event took place that could have a huge negative impact on your portfolio. He put together a special presentation to help you protect yourself. Access it for free here.] #-ad_banner-# The two strongest sectors of the S&P 500… Read More

WARNING: A Major Correction Could Begin This Week A trading prodigy is predicting the biggest stock market correction since 2008.  In short, an important market event will take place on Wednesday that could trigger a freefall in stocks.  He’s been tracking this situation for months. I urge you to take a few seconds to listen to what he has to say. If he’s right, the information he’s going to share could help you save your portfolio and even make money in the coming correction. Click here to find out how to prepare yourself… Read More

WARNING: A Major Correction Could Begin This Week A trading prodigy is predicting the biggest stock market correction since 2008.  In short, an important market event will take place on Wednesday that could trigger a freefall in stocks.  He’s been tracking this situation for months. I urge you to take a few seconds to listen to what he has to say. If he’s right, the information he’s going to share could help you save your portfolio and even make money in the coming correction. Click here to find out how to prepare yourself now.  Sincerely,  Frank Bermea Publisher, Profitable Trading  The major U.S. stock indices finished lower for the second consecutive week, led by the Russell 2000, which lost 2.5%. Since small caps, along with technology stocks, typically lead the broader market higher and lower, last week’s relative weakness in the Russell 2000 suggests investors were bracing for the potential implications of a “no” vote to Sunday’s bailout referendum in Greece. This Greek debt crisis has dominated both the headlines and recent market direction. From a trend standpoint, last week’s market… Read More

The major U.S. stock indices finished last week fractionally lower despite very strong housing data, as anxiety over a potential debt default in Greece this week undoubtedly triggered some defensive liquidation heading into the weekend. Despite the day-to-day volatility that has kept investors on edge for months, the S&P 500 is only up 2.1% for the year. #-ad_banner-# The week’s strongest and weakest sectors were both influenced by the recent rise in long-term U.S. interest rates. Financials put in the best showing, as increasing rates and a widening yield curve both make banks more profitable. Moreover, Asbury Research’s own ETF-based… Read More

The major U.S. stock indices finished last week fractionally lower despite very strong housing data, as anxiety over a potential debt default in Greece this week undoubtedly triggered some defensive liquidation heading into the weekend. Despite the day-to-day volatility that has kept investors on edge for months, the S&P 500 is only up 2.1% for the year. #-ad_banner-# The week’s strongest and weakest sectors were both influenced by the recent rise in long-term U.S. interest rates. Financials put in the best showing, as increasing rates and a widening yield curve both make banks more profitable. Moreover, Asbury Research’s own ETF-based metric shows that, on a percentage basis, the biggest inflow of sector bet-related investor assets over the past one-month and three-month periods again went into financials. This trend has fueled the sector’s outperformance. Utilities were the weakest sector, as rising yields in risk-free Treasuries continued to lure yield-seeking investor assets away from utility stocks. Stocks’ Pinball Game Poised To Continue This Week  In the June 15 Market Outlook, I pointed out that the bellwether S&P 500 was testing minor support at 2,072 amid near-term oversold conditions. I said this level should become the springboard for… Read More

Note from the Publisher: As a valued StreetAuthority reader, I’d like to cordially invite you to a special event.Two of StreetAuthority’s leading analysts sat down for a one-on-one interview about three epic market trends Wall Street is completely missing. This free 30-minute online conference will touch on 1) why inside information points to an epic commodities rebound, 2) what China is hiding from U.S. investors and 3) the next big tech revolution that will rival smartphones… as well as which stocks have the potential to soar from these events. Registration spots are going quickly for our June 23 broadcast. To… Read More

Note from the Publisher: As a valued StreetAuthority reader, I’d like to cordially invite you to a special event.Two of StreetAuthority’s leading analysts sat down for a one-on-one interview about three epic market trends Wall Street is completely missing. This free 30-minute online conference will touch on 1) why inside information points to an epic commodities rebound, 2) what China is hiding from U.S. investors and 3) the next big tech revolution that will rival smartphones… as well as which stocks have the potential to soar from these events. Registration spots are going quickly for our June 23 broadcast. To sign up, click here right now. ____________________________________ The U.S. stock market finished modestly higher last week as the tech-heavy Nasdaq Composite and small-cap Russell 2000 set new all-time highs. The bellwether S&P 500 and Dow Jones Industrial Average moved back to the upper end of their recent ranges.   #-ad_banner-# Although last week’s new highs by market-leading technology and small-cap stocks are certainly encouraging, almost halfway through 2015 the broad market S&P 500 is only up 2.5%. Critical resistance just above the market and underlying support just below it continue to get closer and closer… Read More