Taking Stock - Week of October 4, 2021

Monday, October 4, 2021

Red Arrow Down

DJI30 Index at the close --- 34,002.92 -323.54 (-0.94%)

SP500 --- 4,300.46 -56.58 (-1.30%)

NASDAQ --- 14,255.48 -311.21 (-2.14%)

Russell 2000 --- 2,217.47 -24.16 (-1.08%)

The DJI opened at 34313, off 14 points, and quickly rose to 34410, up 84. After drifting mostly sideways for a half hour, it took a hard fall to 33906, off 421 after 10:30. It bounced then fell more slowly, hitting 33822, off 505, after 11:30. From there it drifted sideways with a slight upward slant, ending the day at 34003, off almost a percent.

This is an inside day by 80 points at the top and 36 at the bottom. The span was 589. The Index is below its 13 and 55 day EMAs, and today's range includes the 144 day EMA. It's slightly above its July lo.

The SP500 started slightly negative, then followed the same path as the DJI. It had a clearly down day by 20 and 10 points. At the lo, it just dipped into its support zone, and the entire session was well below its 55 day EMA. This is the lowest it has been since July. It won't take much more of a drop to hit the 144 day EMA [dark purple line on the chart.]

The NASDAQ started deeper in the red then followed the same path, ending off over 2%. It had a clearly down day by 107 and 142 points. It hit its 144 day EMA, right at the top of its support zone. This is the lowest it has been since July

The Russell 2000 also had the same contour. It had an inside day by 11 points at the top and 13 at the bottom. The 13 and 55 day EMAS have converged, and are contained in today's range. The Index is above its support zone and well above its 144 day EMA.

Two indexes clearly down and two inside, but all lower at the close. In the absence of any contrary indications, I'm going to say the short term trend is still down. If there is anything positive about today's session, it's that each index had a slight up-tick in the closing moments. Pretty weak tea.

DJI Closings -
10/01/19 - 26574
10/02/20 - 27683
09/03/21 - 35369
10/04/21 - 34003

NYSE Internals –
A/D = 1189/2181 = 0.55
A/D Vol = 0.84
New Hi/Lo = 116/96 = 1.21

Tuesday, October 5, 2021

Green Arrow Up

DJI30 Index at the close   ---  34,314.67   +311.75 (+0.92%)

SP500   ---  4,345.72   +45.26 (+1.05%)

NASDAQ   ---   14,433.83   +178.35 (+1.25%)

Russell 2000   ---   2,228.36   +10.89 (+0.49%)

The DJI opened at 34035, up 32 points.  After a zig-zag it rose to 34480, up 477 after 11:00.  From there it was mostly sideways.  It touched near the peak of 34491, up 488, at 3:15, then fell 176 points into the close. This is a clearly up day by 81 points at the top and 214 at the bottom, with a span of 456.  The hi was half a point above Friday's, and the close was 8 points under.  So today's action almost exactly undid yesterday's.  The difference is that the lo is 250 points above Friday's.  Yesterday, the 144 day EMA  passed through the lower part of the day's range.  Bargain hunters note: Thursday's lo and close and Friday's and yesterday's lows were slightly more than 5% off the 8/16 hi.

The SP500 followed a similar path.  It had a clearly up day by 14 and 31 points.  The hi was 6 points under Friday's and the close was 11 points under.  So it missed undoing yesterday's loss by those margins. It bounced off the top of its support zone yesterday, and today's range is about midway between the 55 and 144 day EMAs.  Yesterday's and Thursday's closes were slightly more than 5% off the 9/02 hi, if anyone thinks that's a “buy the dip” opportunity.

The NASDAQ also followed a similar path. It had a clearly up day by 9 points at the top and 118 at the bottom. It bounced off the top of its support zone, and the 144 day EMA passed through the last 3 day's range.  I remains well under last Friday's values.  Daily lows hav been more than 5% off its 9/07 hi.  At yesterday's lo it was 7.9% off.

The Russell 2000 reached its peak after 11:00, slumped until after 12:30, then ran sideways.  Ih had a clearly up day by 4 and 8 points.  It's been off its 3/13 peak by 5% or more several times since then, including 3 of the last 4 closes.  It's still well above it support zone and its 144 day EMA.  The 13 and 55 day EMA's are within today's range.

Gains are better than losses, but this is really just more sideways action.  Ho hum.

DJI Closings -

10/04/19 - 26574

10/05/20 - 28149

09/03/21 - 35369

10/05/21 - 34315

NYSE Internals – 

A/D = 1913/138 = 1.39

A/D Vol = 1.81

New Hi/Lo = 106/63 = 1.68

Wednesday, October 6, 2021

Yellow Arrow Sideways

DJI30 Index at the close   ---  34,416.99   +102.32 (+0.30%)

SP500   ---  4,363.55   +17.83 (+0.41%)

NASDAQ   ---   14,501.91   +68.08 (+0.47%)

Russell 2000   ---   2,214.96   -13.40 (-0.60%)

The DJI opened at 34198.96, off 116 points, and immediately fell hard, hitting, the lo of 33855, off 460, after 10:00.  It stayed below 34125 until 1:30, then rose to 34375 before 2:30.  It was then mostly sideways with a rise of over 100 points in the last 12 minutes to end slightly positive.  This is a mixed day with the high and low lower

by 58 and 181 points.  The span was 578. At the lo, the Index was only 5 points above the 5% loss level from the 8/16  hi, and marginally under its 144 day EMA.  

The SP500 had a similar contour and a slightly more positive close.  It had a mixed day with the hi and lo lower by 4 and 19 points.  At the lo, it touched the top of its resistance band and was 41 points above the 144 day EMA. At the lo it was more than 5% off the 9/02 hi.

The NASDAQ had a roughly similar contour ending with a the day's largest gain of almost ½%.  Daily closings have been more than 5% off the 9/07 hi since 9/28, and even the highs have been below that level since 9/30.  today's lo was only 84 points above the top of the resistance zone, and 25 points above its 144 day EMA.

The Russell 2000 started similar to the other indexes, but when they turned up mid-afternoon, the Russell stayed flat and lost over 1%.  The index has been more than 5% under its 3/15 high almost continuously since 9/10.  It is well above its support zone, but the 144 day EMA cut above the daily low today for the 4th time since late July.

Three indexes up by less than a half percent, and on off by more than a half percent.  More going nowhere.  Stay tuned, I suppose.

DJI Closings -

10/04/19 - 26574

10/06/20 - 27773

09/03/21 - 35369

10/06/21 - 34417

NYSE Internals – 

A/D = 1502/1758 = 0.85

A/D Vol = 0.72

New Hi/Lo = 34/95 = 0.36

Thursday, October 7, 2021

Green Arrow Up

DJI30 Index at the close   ---  34,754.94   +337.95 (+0.98%)

SP500   ---  4,399.76   +36.21 (+0.83%)

NASDAQ   ---   14,654.02   +152.10 (+1.05%)

Russell 2000   ---   2,250.09   +35.14 (+1.59%)

The DJI opened at 34510, the day's lo, up 93 points, and zoomed up to 34795, up 378, on the way to the day's hi of 34974 up 557 after 10:30.  It stayed above 34900 until 2:00, when it was in the midst of a sharp fall, hitting 34750 at 3:00 and, after a 100 point bounce, again at 3:45, followed by multiple quick zigzags.  The gain is nice, but giving back 40% of the early morning gain is all too typical, and not at all comforting.

This is a clearly up day by the robust margins of 543 points at the top and 655 at the bottom.  The span was 465, and the close was 73 points above the 55 day EMA. But the hi was 395 points under the most recent local high on 9/29.

The SP500 behaved in a similar manner, and closed right at its 55 day EMA.  It had a clearly up day by 64 and 93 points.  But its close is 66 points under the 9/23 local hi.  

The NASDAQ also behaved similarly.  It had a clearly up day by 246 and 356 points.  At the lo, it was more than 5% off its 9/07 hi.  At the hi, the Index touched it's 55 day EMA, but at the close was 99 points below it.

The Russell 2000 also behaved similarly.  It had a clearly up day by 39 and 29 points.  At the low it was more than 5% under the 3/15 hi.  The close is 15 points above its 55 day EMA, but 43 points under the 9/27 local hi.

All the indexes had nice gains - so another zig in the ongoing, going nowhere vacillation.

DJI Closings -

10/04/19 - 26574

10/06/20 - 27773

09/03/21 - 35369

10/06/21 - 34417

NYSE Internals – 

A/D = 2329/981 = 2.37

A/D Vol = 2.88

New Hi/Lo = 128/61 = 2.10