Dow, S&P 500, Nasdaq And Transports Have Negative Weekly Charts Despite Friday’s Strength

The Dow Jones Industrial Average, S&P 500 Index, Nasdaq Composite and Dow Jones Transport Average have negative weekly charts despite strong gains as October begins. The Russell 2000 Index has a neutral weekly chart.

A negative chart has the average below its five-week modified moving averages with declining 12x3x3 weekly slow stochastic readings.  

Back on September 20 I wrote Here Are The Warning Flags Flying Over The Stock Market. The Nasdaq was the last to set its all-time intraday high of 15,390.57 on September 7. The S&P 500 set its all-time high of 4,545.85 on September 2. The Dow 30 set its all-time high of 35,631.19 on August 16.

Most analysts on Wall Street still advise investors to be “fully invested” and “buy on the dips.” How can you buy on weakness when you are fully invested?

On September 24 I wrote Monthly Chart For The Dow Shows Significant Long Term Downside Risk. Here is this important chart. The latest bar is for September 30.

The closes on September 30 provided inputs into my proprietary analytics and resulted in monthly levels for October and quarterly levels for the fourth quarter.

The Dow Jones Industrial Average (DJI) (34,326) is below its 50-day simple moving average at 34,967 with its 200-day simple moving average at 33,380 on its daily chart. Its below its five-week modified moving average at 34,784 on its weekly chart. The Dow 30 is above its annual pivot and quarterly value level at 33,426 and 33,045 with its semiannual pivot at 34,846 and monthly risky level at 37,751.

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The S&P 500 Index (SPX) (4,321.73) is below its 50-day simple moving average at 4,443.13 with its 200-day simple moving average at 4,137.90 on its daily chart. Its below its five-week modified moving average at 4,423.93 on its weekly chart. SPX is above its semiannual and annual value levels at 4,137.20 and 3,932.35 with its quarterly pivot at 4,338.86, and monthly risky level at 4,730.17.

The Nasdaq Composite (IXIC) (14,473.76) is below its 50-day simple moving average at 14,909.12 with its 200-day simple moving average at 13,960.14 on its daily chart. Its below its five-week modified moving average at 14,871.14 on its weekly chart. The Nasdaq is above its semiannual and annual value levels at 13,855 and 12,000 with its monthly and quarterly risky levels at 15,259 and 15,875.

The Dow Jones Transport Average (DJT) (14,250.71) is below its 50-day simple moving average and its 200-day simple moving average at 14,527 and 14,292 on its daily chart. Its below its five-week modified moving average at 14,492.53 on its weekly chart. Transports is above its quarterly and semiannual pivots at 13,871 and 13,310 with its annual and monthly risky levels at 14,424 and 17,038.

The Russell 2000 Index (RUT) (2,241.63) is above its 50-day and 200-day simple moving averages at 2,229.71 and 2,217.67 on its daily chart. It’s just below its five-week modified moving average at 2,243.00 on its weekly chart. Its 12x3x3 weekly stochastic reading is rising at 59.57. This makes the weekly chart neutral.

The Russell 2000 is above its annual and semiannual value levels at 2,120 and 2,095 with its quarterly pivot at 2,184 and monthly risky level at 2,409.