The market has slipped into a choppy, sloppy affair as the indexes sway back and forth. Meanwhile, the action in individual stocks continues to present investors with little in the way of meaningfully profitable set-ups, although there is the occasional upside surge among some of the names on my long watch list, as we will see later in this report.
The S&P 500 Index acts similarly to the Dow Jones Industrials Index as it rallies back up into its 10-day moving average on light volume that was -8% lower than the prior day’s levels. After a multi-day downtrend, the index so far looks like it is engaging in a simple reaction bounce. The index ended Friday where it began after gapping up at the open on a strong jobs report, then selling off into the red before finally sliding back to the upside by the bell.
What I find most telling about the action of the index, along with the other majors is that the big breakaway gaps to new highs seen in these indexes two Wednesdays ago failed to break away. Instead the indexes quickly lost momentum and slid back to the downside, putting them back into their current choppy price ranges.
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