Trading Places with Tom Bowley

Taking A Look At Near-Term Downside Risk For The S&P 500

Market Recap for Thursday, September 21, 2017

We are in one of the most bearish historical periods of the year and I've provided a bit more information about it in the Historical Tendencies section below.  I'm pointing this out because equities took a break on Thursday and futures are down slightly this morning.  We could be in for more short-term weakness and I've identified key support levels to watch on the S&P 500 in the Current Outlook section below.

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Railroads, Transports Lead Dow Jones To 6th Consecutive All-Time High

Market Recap for Wednesday, September 20, 2017

It was another stellar day for industrials (XLI, +0.73%) as this sector led the Dow Jones to a 6th consecutive record closing high.  The gains have been fairly slow and methodical, but that's how bull market advances work.  They tend to occur very slowly in boring fashion as volatility ($VIX) drops day after day.  After the VIX closed at 12.23 on September 5th, it's dropped nearly every day and closed yesterday at 9.78.  It's rare to see the VIX below 10 historically so take note of this lack of expected volatility ahead.  It's flashing a very bullish signal.

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Banks Strengthen To Lead Financials, Major Indices Higher

Market Recap for Monday, September 18, 2017

It was another very bullish day on Wall Street as most indices finished with gains once again.  The Russell 2000 ($RUT) led the charge with a 0.65% rise.  Gains in the Dow Jones and S&P 500 were more modest, but still both managed to close at fresh all-time highs.  It's difficult to be disappointed with that type of action.

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S&P 500 Tops 2500 For First Time; Monday Trade Setups

Market Recap for Friday, September 15, 2017

It was another day of records on Wall Street to close out the week.  Despite the peak of seasonal summer weakness approaching, buyers stepped up to the plate once again, this time driving S&P 500 prices to another all-time high close and, in the process, clearing a psychological level at 2500.  Volume was extremely heavy, but don't read too much into that.  It was quadruple witching day, which occurs the 3rd Friday of March, June, September and December.  We always see heavy volume on these days as you can see below on the NASDAQ chart:

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Autos And Auto Parts Continue To Strengthen After Their Recent Breakout

Market Recap for Thursday, September 14, 2017

Consumer discretionary (XLY, -0.54%) was the worst performing sector on Thursday, but you'd never know it from looking at the automobiles or auto parts stocks.  The Dow Jones U.S. Automobiles & Parts Index ($DJUSAP) is featured below in the Sector/Industry Watch section, so I'll get to that in a bit.  Travel & tourism stocks ($DJUSTT) and broadcasting & entertainment stocks ($DJUSBC) both lost more than 1% yesterday as discretionary stocks lagged.  Walt Disney (DIS), a major component of the latter group, has struggled quite a bit of late but has very good seasonal news that I also share below in the Historical Tendencies section.

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All-Time High Virus Spreads; NASDAQ And Dow Jones Catch It

Market Recap for Wednesday, September 13, 2017

Wide participation is a key to sustaining a bull market advance.  We want as many indices, sectors and stocks on a buy signal as possible.  That makes it nearly impossible for bears to regain control of the market as technical buyers show up everywhere.  Two days ago, the S&P 500 broke out to an all-time high.  Yesterday, it was the Dow Jones and NASDAQ that did the same.  The small cap Russell 2000 ($RUT) hasn't yet made its all-time high close, but it's clearly in an uptrend and it's likely only a matter of time before the RUT joins the party:

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Banks Lead Follow Through Rally As They Bounce Off Key Support

Market Recap for Tuesday, September 12, 2017

Financials (XLF, +1.18%) were the primary beneficiary on Tuesday as treasury yields rose.  That typically leads to strength in this sector, with particular strength usually seen in banks ($DJUSBK) and life insurance ($DJUSIL).  Yesterday was no exception and the DJUSBK is featured below in the Sector/Industry Watch section.

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S&P 500 Breaks Out To All-Time High

Market Recap for Monday, September 11, 2017

It was a very bullish day on Wall Street.  First and foremost, the benchmark S&P 500 rose more than 1% to close at a fresh all-time high.  Its previous closing high was approximately 2481.  The bulls left no doubt about this breakout, finishing clearly above that 2481 level - at 2488.  Here's the latest:

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Bifurcated Friday Session For Major Indices, Sectors

Market Recap for Friday, September 8, 2017

The NASDAQ fell on Friday mostly due to a very weak technology sector (XLK, -0.82%).  Computer hardware ($DJUSCR) tumbled as Apple (AAPL) closed well below its 20 day EMA on heavier than normal volume for the first time since its big drop back in the second week of June.  Here's the technical damage on AAPL:

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