Stock Market Breadth: Stock Rally Fades

Stock Market Breadth: Stock Rally Fades

Stock markets are trading lower as investors are pausing after recording a stellar stock rally yesterday. Concerns about higher yields are still very much the focus and the fact that the data has shown that the ECB has slowed its bond purchase programme is a further worrying aspect.

Asian Markets 

The Asian stock market traded mostly lower after starting the week on a positive note. The Shanghai index declined 1.20%. The HSI index decreased by 1.21%, while the ASX index fell 0.40%. The Nikkei index dropped by 0.86%.

Dow Jones and S&P 500: Market Breadth

The Dow Jones’ market breadth picked up some momentum yesterday. 73% of the Dow Jones stocks traded above their 200-day moving average. 

The S&P 500 stock breadth gained strength yesterday. 83% of the shares traded above their 200-day moving average. 

Dow Jones Futures Today

The Dow Jones futures are trading lower today. In terms of economic data, investors will be looking at the IBO/TIPP Economic Optimism which is due later in the day. The forecast for this data is 52.1%, while the previous reading was at 51.9. 

The Dow Jones futures have lost some of their mojo today. After piercing the upper level of the Bollinger Band, the Dow Jones reversed its direction and we saw a mean reversion trade.

The Dow Jones moved towards the 20-day simple moving average on the daily time frame. Overall, the bullish trend is still very much in place as the price is trading above the 50, 100 and 200-day simple moving averages on the daily time frame. As for the RSI, it has moved away from the overbought area and currently trading at 56.

The near term support is at 30,886, while the resistance is at 32,026.    

Stock Market Rally

The S&P 500 stock index closed higher yesterday; the index advanced by 2.38%. The energy sector led the index higher and all the 11 sectors closed higher. 

The Dow index also advanced yesterday; the Dow stocks moved the index higher by 1.95%. 28 shares advanced, while 2 shares closed lower. 

The NASDAQ composite, a tech-savvy index, closed higher by 3.01% yesterday.

S&P 500 Leaders and Laggards: Dentspy and SBA

Dentspy stock contributed the biggest gain, soaring 12.5%. SBA Comms stock was the largest drag; it fell by 2.82%. The S&P 500 stock index is up 3.38% so far this year.

Dow Jones Leaders and Laggards: Boing and Merck & Co 

Boeing provided the biggest help for the Dow Jones; it advanced by 5.84%, while Merck & Co was the largest decliner, it fell by 0.88%.