📈 Weekly Market Recap 📈
Markets Mixed Amid Inflation Data and Fed Uncertainty
🗓️ June 28, 2024 🗓️
After a brief repricing of Nvidia (NVDA) that initially hit the NASDAQ, major averages regrouped and closed out the week mixed. Investors were cautious, weighing conflicting comments from Fed officials on policy early in the week. This led to some back-and-forth trading, but Friday's key inflation data showed inflation cooling, albeit still sticky, which rallied the S&P 500 and NASDAQ to record highs before a late selloff.
📉 Market Summary:
DJIA: -31.47 points (-0.1%) to 39118.86
S&P 500: -4.14 points (-0.1%) to 5460.48
NASDAQ: +43.24 points (+0.2%) to 17689.36
Russell 2000: +25.66 points (+1.3%) to 2047.69
🛢️ Crude Oil: Continued its rally off a June 4 low of $73.25 a barrel, closing at $81.50 as tensions in the Middle East expanded.
📊 Market Sectors:
Outperforming: Energy (XLE), Communication Services (XLC), and REITs (XLRE)
Underperforming: Utilities (XLU), Materials (XLB), Technology (XLK), and Consumer Staples (XLP)
📅 Week Ahead:
A short week could be volatile with key job reports and manufacturing activity expected to stir the debate on whether a Fed rate cut is in play for September.
Minutes from the June FOMC Meeting are also due.
📉 Technical Condition:
The technical indicators are mixed with MACD in bearish territory for the S&P 500 and NASDAQ, while Momentum, as measured by the 14-day RSI, is positive but slowing.
The DJ Transportation Index and small-cap Russell 2000 broke out above key MA resistance areas, indicating a broadening rally.
📈 Breadth:
Positive but doesn’t show an aggressive broadening of the rally.
NYSE and NASDAQ Advance/Decline lines were higher but remain below their highs from mid-May.
🧠 Investor Sentiment:
Bullish sentiment according to the American Association of Individual Investors (AAII) remains above its historical average for the 33rd time in 34 weeks.
📈 Key Indicators:
Cyclical Trend Index (CTI): Positive expected to remain bullish for another two or three weeks.
Momentum Index (MI): Positive with NYSE and NASDAQ breadth showing mixed signals.
Sentiment Index (SI): Negative down a notch from the previous week.
Market Posture: Bullish as of 05/03/2024.
💡 Industry Group Rankings:
Strongest: Media-Publishing, Footwear, Marine Transportation, Heavy Construction.
Weakest: Trucking, Retailers-Drug Based, Oilfield-Drilling, Building Materials.
📊 ETF Center:
Top Performing: Specialty Communications (+2.35%), Sector-Telecom (+2.35%), Sector-Energy (+1.52%), Sector-Internet (+1.07%), Growth-Small Cap (+1.02%).
Weakest: Commodity-Agriculture (-4.77%), Commodity-Precious Metals (-2.19%), Specialty Financial (-1.84%), Shorts (-1.82%), Europe (-1.70%).
📰 Conclusion: A Mixed Bag with a Dash of Optimism 📰
This week was a rollercoaster ride, with Nvidia shaking things up and inflation data keeping us on our toes. As we head into a short, potentially volatile week, keep your eyes on job reports, manufacturing data, and those ever-cryptic Fed minutes. The market may be playing hard to get, but with some technical resilience and a bit of bullish sentiment, we might just see a few more surprises before summer heats up! 🌞📈
*Disclaimer: The information in The Options Oracle is my opinion, not financial advice.
Follow Me On Substack Notes To Get My Daily Market Overview and Market Recap.
Looking For More Trade Ideas? Follow Me on Twitter/X EdwardCoronaUSA 🌟📈