Craig Johnson’s

Stock Market Summary

Monday, March 27, 2017

  • The major stock market indices declined well over 1% for the week. Tuesday’s drop caused most of the damage, with the rest of the week diluting the impact with mild gains. Late day volatility on Friday turned an up day into a mixed market day.
  • Pullbacks of 2 – 4% are quite typical during market advances as not only do they bring a level of fear back into the market which is healthy, but they also take away some of the short term price excess that can occur.
  • From intraday high to intraday low the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all recorded declines around 2.50% or more. The Russell 2000, which took the brunt of the selling, declined nearly 5.75%.
  • The Nasdaq Composite which has been the strongest of the major indices hit an all-time high on Tuesday before the decline fully set in. The Russell 2000’s dismal showing last week was disappointing after what looked like it had finally found its footing.
  • Utilities and REITs were the week’s two best performing sectors and the only sectors to gain for the week. Financials suffered a huge decline of nearly 3.75% for the week. Declines for the week of more than 1% included the basic materials, energy, healthcare and industrial sectors.
  • Short term the stock market needs to break through near term resistance. This could occur at any time. Until then, the market will have limited upside or downside potential.
  • The stock market’s intermediate and long term trends are higher.

 


Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases.

Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service.  Past performance is not a guarantee of future results.

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