Dow Jones continued its bullish run. It recorded another high for nine consecutive sessions. The index muscled its way with about 1% gain for the week. But S&P 500, Nasdaq and Russell 2000 gave mixed performances.
So far, 75% of the companies reported their quarterly results. And most of these stocks are approaching all-time highs too. Based on this information, it is clear that investors are still bullish about the market.
In the table above, Dow Jones continued to show supremacy. It is the leading index with 1.2% gain while Russell 2000 is the laggard for the week. Although Nasdaq did not make any gain, it still spearing with 18% gain in 2017. Russell 2000 is the only index that still show single digit gains for this year.
Let us see how these market indexes performed based on technical analysis.
Dow Jones has been rising for two consecutive weeks. Here are my three reasons why I think Dow Jones can climb for a longer period.
Nasdaq continued to decline gradually since it reached all time high of 6450. Apart from bouncing twice from pullbacks to 50DMA lines, the index also found help on the imaginary support line. See if it can continue to float above the line in the next several days.
Meanwhile, S&P 500 keeps moving sideways for the last three weeks. It seems that it has met a resistance at 248. This is normal especially as it keeps pushing for new highs after retracing to the 50DMA line (red arrows). See if it can challenge and pierce through that 248 barrier convincingly next week or the week after.
Russell 2000 showed us why it is still a laggard amongst the four indexes. It continued its slide down since the week before. There is definitely lack of conviction to break away from the multi-month consolidation. On a positive note, the two moving average lines, 50DMA and 200DMA are in an uptrend. The next good sign is that IWM is trying to hover around the 50DMA and get support on the support imaginary line at 139. See it this chart bounces above the support line next week.
More investors continue to pile the bearish camp (by +7.8). One of the possible reasons is that most of them were hit hard by their stocks' quarterly results and many take the losses quickly to preserve their capitals.
The Fear & Greed Index remained in the 'Greed' section. While this can be a good news, please take serious attention on what I am about to share. The index is now lower than the one last week. Perhaps, many herd followers are trying to curb their risk and opts for less risky strategy like income or dividend investments.
With more capital flowing into the stock market, index such as Dow Jones continue to record new high. Plus, rising earnings also help to support leading stock by pushing their prices over time.
All the best in your trades next week!