Craig Johnson’s

Stock Market Summary

Monday, September 28, 2015

  • Stocks were lower last week with the biotechnology industry extending its consecutive daily losing streak to six. Biotechnology had been one of the leading groups during the past couple of years. Recent weakness in the biotechnology area, especially last week, added to the weakness that has been pressuring healthcare stocks in general since their July high.
  • The major indices had a tough week. The S&P 500 declined more than 1%, while the Nasdaq Composite dropped over 2.7%. The Dow Jones Industrial Average was the best performing index declining less than 0.5% thanks to a huge gain on Friday from one of its components, Nike. The worst performing index was the Russell 2000 dropping well over 3%.
  • The financial sector, which has been under pressure all month, gained three out of the five trading days last week. A stronger showing by this sector is quite important for the likelihood of a higher trend developing for the stock market. Last week’s strength in the face of an overall market decline is a good start.
  • Since the decline got underway in August, the stock market has experienced significant technical damage. It currently is in the process of repairing itself and building a base that it can begin to move higher from in a sustainable way. Many individual stock leaders are in a similar state. Further volatility (sharp moves higher and lower, even a possible retest of recent lows) is likely during the next week or two as the healing process continues and moves closer to the point where the next uptrend can get started.
  • The market currently is in a sideways short-term trend, but the intermediate and long term trends remain 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.