The Gilmo Report

June 24, 2018

June 23, 2018

The Dow Jones Industrials Index avoided a nine-day losing streak on Friday, rallying on the strength of oils and defensive names. On Thursday it set a 40-year record by finishing in the red for the eighth day in a row. Friday’s rally looked impressive for most of the day, but the Dow gave up not quite half its gains right into the close as it stalled at the 50-dma and closed in the lower part of its trading range.

 

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Volume was very heavy on Friday because of the Russell Index rebalancing, contrasting with the big red volume spike last week on triple-witching options expiration. The S&P 500 Index gave up more than half of its gains on Friday into the close, stalling underneath the 10-dma on very heavy volume. Friday’s rally in the S&P and Dow looked more like a movement into oils, thanks to a bump in oil prices, and more defensive value type names.

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