In the market yesterday the S&P 500 was down -0.57% closing at 2164.69. For the week ended September 23, 2016, the S&P 500 had a gain of 1.19% to end the week on a positive note. Furthermore, for the year, the broad market index is up for the year with a year to date (YTD) return of 5.91%.
InvestProfits Index: 73.4
73.4% of stocks tracked by InvestProfits are trading above their 200 Day Moving Average (DMA). That means 3,628 of the 4,943 stocks are trading above their 200 day moving average. Above 80 percent is bearish; 20 percent and below is bullish (see footnote 3 for more). To filter out the volatility of low priced stocks, those selling below a price of $2 per share were omitted. The percentage of stocks selling above the 200 day moving average is updated daily and can be found in the newsletters section of investprofts.com.
Volatility This Year: 44 Days
2016 has brought some volatility with 20 days that the S&P 500 gained one percent, and there have been 16 times that the S&P 500 lost one percent in a single day. Less volatility was seen at higher levels as there were 3 days that the S&P 500 gained two percent and 5 days that the S&P 500 lost two percent or more in a single day. As a result, there have been 44 times that the S&P 500 had a 1% or 2% gain or loss after the market closed, this year (see table 1).
(Table 1) 2016 Market Volatility (Number of Days that SP 500 had a 2% or 1% Gain/Loss in Single Day)
Days w/ 1% Gain
Days w/ 1% Loss
Days w/ 2% Gain
Days w/ 2% Loss
2016 Total Days Gain/Loss of 2% or 1%
Highest Close: 2190.2
The S&P 500 highest close ever of 2190.2 was on Aug-15-2016 resulting in a current return of -1.2 % from its historical high.
1. (List 1)- Stocks with Big Increase: Some investors will see a stock that has gone up as a buy indication because it can signal the stock is breaking out of a base or downtrend and now heading up.
2. (List 2)- Stocks Up in Volume: Frequent traders will follow stocks that have gone up in price and volume to get in on the stock while it is trending upward. If the daily volume has increased significantly (say, 240%, 370%....) above its daily average, it's usually because of institutional buying (i.e. mutual funds...). This will lead many momentum buyers to buy the stock while it's trending up.
3. InvestProfits Index: This is an index indicating a bullish or bearish market. When 80 percent of stocks in the market are selling above their 200 Day Moving Average many consider the market to be overbought and they expect a negative correction in the market. On the opposite end, if less than 20 percent of stocks are selling above their 200-day moving average, the market is considered oversold, which means investors should expect a positive correction.
Written by Jim Vickery
Stock Market Weeklyis a weekly newsletter covering fundamental and technical analysis indicators about the U.S. Stock Market for the current week. It is published every Friday and is a copyright of InvestProfits.com. All Rights Reserved.
InvestProfits is a stock market research tools company offering resources for individual traders and investors. Information on Interactive stock charts and investing videos can be found at www.investprofits.com