3 Things to Watch on the NYSE Composite Chart

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Despite a new terrorist threat in Germany, which resulted in late selling, the broader market closed almost unchanged. The S&P 500 opened higher but finished the day down 0.1%. The Dow Jones Industrial Average and Nasdaq rose less than 0.1%.

Six of the S&P’s 10 sectors closed with a loss. But health care rose 0.4% as bargain hunters snatched up shares of biotechnology stocks. The iShares NASDAQ Biotechnology Index (ETF) (IBB) gained 1.3%.

The Dow benefited from a 3.5% rally in Wal-Mart Stores, Inc. (WMT) and a 4.4% advance in Home Depot Inc (HD). Together they added 49 points to the blue-chip index.

Elsewhere in the retail sector, Dicks Sporting Goods Inc (DKS) fell 9.4% after missing earnings estimates and lowering guidance. Under Armour Inc (UA), Finish Line Inc (FINL) and Lululemon Athletica inc. (LULU) also posted big losses.

Energy stocks fell 1.1% as oil dropped 2.6% to $40.67 a barrel. Gold lost 1.4% at $1,068.60 an ounce, and silver closed 0.4% lower at $14.17 an ounce.

The Stoxx Europe 600 gained 2.5% and France’s CAC-40 jumped 2.8%. It seems that in light of the terror attacks investors anticipate further easing from the European Central Bank. An ECB economist said the attacks would bolster the case for more stimulus.

The euro continued its steady decline, falling to $1.0647 against the U.S. dollar, a seven-month low.

At Tuesday’s close, the Dow Jones Industrial Average gained 6 points at 17,490, the S&P 500 fell 3 points to 2,050, the Nasdaq lost a point at 4,986, and the Russell 2000 fell 3 points to 1,153.

The NYSE Composite’s primary exchange traded 1.1 billion shares with total volume of 4.4 billion. The Nasdaq crossed 1.8 billion shares. On the Big Board, decliners outpaced advancers by 1.7-to-1, and on the Nasdaq, decliners led by 1.2-to-1. Block trades on the Big Board increased to 5,683 from 5,527 on Monday.

NYSE Composite Chart
Click to Enlarge

Chart KeyThe chart of the NYSE Composite index, which includes all stocks traded on the Big Board, may appear complex. However, there are just three important items of interest:

  1. October’s rally failed at the exact intersection of the resistance line at about 10,620 and the intermediate resistance line;
  2. The channel up from the September low is a bearish channel, which typically break to the downside; and
  3. MACD is decidedly negative.

Conclusion

The NYSE Composite chart should not create a feeling of optimism. In fact, looking back to Friday’s S&P 500 chart, until the index is able to close above the important resistance line at 2,080, the intermediate trend is down. And even though the S&P 500 bounced above its 200-day moving average at 2,064 on Tuesday, there is little to cheer about since it closed lower.

On Monday morning, Raymond James’ Jeff Saut said the “downside is not yet complete.” He hoped for “another Turning Tuesday,” but Tuesday turned out to be flat. Perhaps we will get a Wednesday wind to move us higher.

Today’s Trading Landscape

To see a list of the companies reporting earnings today, click here.

For a list of this week’s economic reports due out, click here.


Article printed from InvestorPlace Media, https://investorplace.com/2015/11/daily-market-outlook-3-things-to-watch-on-the-nyse-composite-chart/.

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