Monday marked the end of the first quarter and the S&P 500 recorded its fifth straight quarter of gains, only the fifth time this has happened over the last 40 years. Generally positive economic data got the market off to a good start for April and the second quarter, with the S&P 500 (^SPX) and Dow Jones Industrial Average (DJIA) hitting all-time highs. However, a lackluster jobs report on Friday sucked the wind out of the sails, sending the broad market indexes sharply lower to end the week. The Nasdaq Composite (^COMPX) bore the brunt of the abuse on Friday, dropping 2.6%. Once again Internet stocks were battered this week, with the S&P Internet industry index losing 3.6%.
The iShares Dow Jones U.S. Index Fund (IYY) ended the week up just over 0.6%. Like the broad market indexes, IYY also marked multiple new all-time highs this week before dropping 1.3% on Friday. The ETF did violate its new short-time support around $95, but more significant support is available around $93.00.
For the week ending April 4, 2014, one CI Market Dashboard indicator is bullish, three are bearish, and five are neutral.
Indicators worth mentioning this week:
- With the IYY still trading above its 100-day simple moving average, this indicator is still our sole bullish signal. The spread between IYY’s closing price and its moving average even expanded this week, up to 2.6% from last week’s 2.3%. As long as IYY stays above the moving average, this indicator will be bullish.
- IYY’s MACD line closed all but even with its signal line this week, leading to a rare neutral signal for this indicator after three weeks of bearish signals.
- The percentage of NYSE stocks trading above their 50-day moving average continues to be bearish until its reading either falls below the 25% bullish threshold and then rebounds above 25% or no subsequent confirming bearish signal is generated before the current bearish signal goes “stale” and reverts back to neutral on September 12, 2014.
- The NYSE Bullish Percentage P&F chart closed the week at 70.72%, again moving above the 70% bearish threshold. The indicator was already bearish, so a move back below 70% would reset the six-month mark where the bearish signal would go “stale.” As of now, the signal would revert back to neutral on September 26, 2014.
- The gap between $NASI and its five-day exponential average closed a bit this week, but the $NASI is still below the average. Furthermore, the MACD of $NASI ended the week its signal line, making the indicator bearish.