For the week ending May 9, 2014, one CI Market Dashboard indicator is bullish, four are bearish and four are neutral.

The iShares Dow Jones U.S. Index Fund (IYY) slid 0.13% this week to close at $94.88. At the risk of sounding like a broken record, the ETF once again failed to penetrate the $95 resistance level.

Market Dashboard indicators worth discussing this week are:

  • IYY remained above its 100-day simple moving average, so the iShares Dow Jones Index Fund indicator remains bullish. The difference between IYY’s closing price and the moving average dropped to 2.3%.
  • The MACD on IYY was one of two indicators to change signals. IYY’s MACD line (+0.232) was essentially even with the signal line (+0.222) at the close of this week, so the indicator went from bullish to neutral.
  • The percentage of NYSE stocks trading above their 50-day moving average dropped this week to 55.17% but continues to be bearish. The signal will only change in the near-term if its reading either falls below the 25% bullish threshold and then rebounds above 25%. If the signal is still bearish, and no subsequent confirming bearish signal has been generated, the bearish signal goes “stale” and reverts back to neutral on September 12, 2014.
  • The NYSE Bullish Percentage P&F chart fell to 64.79% this week. This signal will also remain bearish until either its reading falls below the 30% bullish threshold and then moves back above it, or the bearish signal goes stale on October 10, 2014 (assuming no subsequent bearish signals have been generated
  • The NASDAQ Summation Index Moving Average Crossover with MACD Confirmation indicator was the other indicator to change its signal this week. The $NASI (-483.15) closed the week below its five-day exponential moving average (-425.88), and the MACD line of $NASI (-126.05) crossed below the signal line (-121.58). This confirming bearish crossover caused the indicator to become bearish this week.
  • The AAII Investor Sentiment Survey Bullish Percentage indicator remains bearish as bullish sentiment fell to 28.34%. The indicator will remain bearish until the bullish percentage falls below the bullish threshold at 25% and begins to rise, or no subsequent bearish signal is generated prior to June 26, 2014. At which point, the signal will go “stale” and revert back to neutral.

Visit the Market Dashboard page for individual charts for all nine indicators as well as more in-depth commentary regarding each indicator and the overall market action for the previous week.

Print Friendly

Tags: , , , , , , , , , ,

Wayne Thorp

Wayne A. Thorp, CFA, is a vice president and the senior financial analyst at the American Association of Individual Investors (AAII). His primary responsibility is to oversee AAII's content strategy. He is also the program manager for AAII's Stock Investor Pro fundamental stock screening and research database program and is on the advisory boards of AAII's Stock Superstars Report and Dividend Investing newsletters. He holds the Chartered Financial Analyst (CFA) designation and is a 1997 honors graduate of DePaul University in Chicago. Wayne's interests include stock screening, technical analysis and charting, social media and tech gadgets. However, in the summer he'd prefer to be hip-deep in northern Michigan's Manistee River fly-fishing for rainbow trout. He is also a rabid University of Michigan and Detroit Red Wings fan.

Leave A Response