Craig Johnson’s

Stock Market Summary

Monday, September 19, 2016

  • After weeks of very little volatility, the S&P 500 closed higher or lower by more than 1% four out of the last six trading days. Much of that extreme price action was likely attributable to quadruple witching expiration that occurred on Friday.
  • The indices finished the week little changed. Most finished the week with a slight gain. The Nasdaq Composite had a tremendous week gaining three out of the five days, finishing higher by more than 2.30%. This outsized gain can be attributed to the strong performance in two groups: biotechnology and semiconductors.
  • The S&P 500 decline from the mid-August high to the low point on Monday is about 3.40%. The Russell 2000 drop from its recent high on the previous Wednesday to its recent low on Tuesday is just under 4.40%. The Nasdaq Composite decline from the recent high to the recent low was near 3.60%. As of Friday’s close the S&P 500 is down about 2.40%, the Russell 2000 is down just under 2.90% and the Nasdaq Composite is less than 1% from the all-time high.
  • Typically, the market tends to hit a short term high in mid-September and sometimes can be followed by a few rough weeks. Those declines tend to be about 5% in nature if they are short term pullbacks, which this appears to be. The S&P 500 closed Friday near 2139. Support is at 2116 and 2069.
  • The short, intermediate and long term trends are all higher.  

Sources:,,, Dow Jones News, Financial Times,, Investor's Business Daily,,, Thomson Reuters/First Call, U.S. Dept of Treasury, 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.