Weekly ETF Rewind: Waning Price Momentum

Although the S&P 500 (SPY) rose another +0.6% for the year and the Dow Jones Industrial Average (DIA) hit post-swoon recovery highs, the once leading NASDAQ 100 (QQQQ) and Russell 2000 (IWM) put in divergent performances, down -0.4% and -0.8% respectively. While on one hand, the market now sits just one or two more markups below the much contemplated SPX 1,000 level, on the other, these divergences make waning price momentum all the more readily apparent.

(Click Image to Enlarge/ Glossary)

Week Twenty-Five of 2009 features options and futures expiration Friday, and the following busy earnings and economic calendar:

• Yahoo! - U.S. Economic Calendar
• Yahoo! - U.S. Earnings Calendar

Enjoy Your Weekend!

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Never investment advice

Comments

[Market Sniper:]

We have bearish divergences all over the place now and they are widening. S&P vs 10 day moving Average..divergence. Same with the RUT and the NASDAQ. % of DJIA stocks above the 10 and 30 Day MA's..same thing. The wider the divergences become, the steeper the drop. Looking for a turn.

Jun 14 08:11 PM

[richjoy403:]

I agree we are going to see a near-term turn lower...but it seems the larger question asks--is this turn lower of importance to the short-term trader, or is it of importance to the long-term investor? (I am not disparaging the short-term trader, only noting that some people cannot devote the attention required to trade in-and-out on a daily basis.)

Jun 15 08:56 AM

[Market Sniper:]

Longer term? Who knows as NOBODY knows what happens next. that is why I am a day trader. Easier to manage risk. Put a gun to my head, I would have to say that I still think S&P 1050 is doable. However, the fundamentals (the longer your trading time frame, the more you should weight the fundies) argue for a much, MUCH lower price level. If it were not for "interference" in the market we should be at around S&P 540 to be fairly valued at this point. Just one man's opinion. But only PRICE pays. Market could care less what I think, what you think or what anybody else thinks.


On Jun 15 08:56 AM richjoy403 wrote:

> I agree we are going to see a near-term turn lower...but it seems
> the larger question asks--is this turn lower of importance to the
> short-term trader, or is it of importance to the long-term investor?
> (I am not disparaging the short-term trader, only noting that some
> people cannot devote the attention required to trade in-and-out on
> a daily basis.)

Jun 15 02:59 PM