By Jeff Pietsch
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Markets largely recovered from a near 700-point Dow (DIA) downdraft last Monday, posting a mere -1.9% decline for the week. However, considering the period's dour economic news - starting with an official NBER recession call and culminating in the worst jobs report since 1974 - the move almost feels outright positive. (USA Today - NBER Statement; AFP - US Sheds Jobs)
Sector-wise, Consumer Discretionaries (XLY) outperformed with a positive +2.9% pop, but is now approaching overbought status with an RSI-2 of 90 and an RSI-5 of 70. Nonetheless, it has been a relatively steady performer this month with a Trend Stability score of 73. Could this be a leading indicator for a nascent recovery? Meanwhile, the undoubtedly related loser was Energy (XLE), down a whopping -12.2%. If you are looking for oversold, though, look no further than Commodities (DBC), which is now featuring extreme readings (see Non-Equity).
Week 50 of 2008 (can that be possible?) features the following economic reports:
- Yahoo! - U.S. Economic Calendar
- Yahoo! - U.S. Earnings Calendar
Enjoy your weekend!
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