Market sell-off: More to come?
Last week’s market sell-off has definitely put a dent in what had been up until now an unrelentingly bullish trend picture. While Friday’s strong rally did help most major markets and indices end the week above critical support levels, damage has still been done.
For example, the weekly trend picture – while not (yet) outright negative – is showing that the current dominant trend periods are now down, not up. This can change of course, but for now suggests caution about the market’s near- and/or intermediate-term outlook.
Last week’s lows now represent critical downside support: about 1490-1500 for the S&P 500, 2540 for the Nasdaq, 865 for the Russell 3000, and about 13,250 for the DJIA. Upside resistance is plentiful: about 1510-1515, 1525, and 1540 for the S&P 500; 880-885 and 890-895 for the Russell 3000; 2580-2590 and 2610-2620 for the Nasdaq; and 13,450-13,500 and 13,650-13,700 for the DJIA.
New positions
No new positions this week.
Watchlists
Stocks of interest showing up on this week’s “upside strength” scans include Air Products & Chemicals (APD), Apache (APA), Barnes Group (B), Briggs & Stratton (BGG), CKE Restaurants (CKR), ConocoPhillips (COP), CVS Caremark (CVS), Darden Restaurants (DRI), Dover Corp. (DOV), Equifax (EFX), Family Dollar Stores (FDO), Kraft (KFT), National Semiconductor (NSM), Post Properties (PPS), Tyson Foods (TSN), Vector Group (VGR), and Wal-Mart Stores (WMT).
“Oversold” stocks of interest this week include Ameren (AEE), Duke Energy (DUK), Health Care Property Investors (HCP), Hershey (HSY), Hospitality Properties Trust (HPT), Jabil Circuit (JBL), KeyCorp (KEY), MBIA (MBI), Progress Energy (PGN), and Xcel Energy (XEL).
