The Gilmo Report

September 10, 2017

September 10, 2017

Friday’s action had an odd odor to it, as the NASDAQ 100 and NASDAQ Composite Indexes were both hit with selling on lighter volume. The big-stock NASDAQ names, however, took the brunt of it as the NASDAQ 100 tanked -0.85% on the day. Meanwhile, in an interesting divergence, the S&P 500 and Dow Jones Industrials Indexes closed roughly flat, although both stalled and gave up on early rallies.

 

GR091017-$COMPQ

 

The S&P 500 Index doesn’t look all that much different from the NASDAQ as it also pulled into its 10-day moving average with volume declining. The Dow is, however, testing support at the 50-day moving average for the fourth time in the past three weeks. It closed up on Friday, along with the broader NYSE Composite, which was up 0.07%, and the small-cap Russell 2000, which was up 0.05%.

The divergences on Friday were a bit funky, to say the least, but in my view the breakdown in big-stock NASDAQ names could be telling if we also see the Dow bust support at the 50-day line in the coming days. As I’ve indicated previously in recent reports, this is a choppy market that lends itself more to an opportunistic swing-trading or tactical approach rather than a straight-forward investor’s approach where one builds positions in anticipation of an intermediate-term trend developing.

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