On Monday the Dow Jones Industrial Average closed with a small loss, but The Wall Street Journal’s headline was “Dow Suffers Longest Losing Streak Since 2011.” It is the longest streak on a day-to-day basis, falling for an eighth straight session. Monday’s loss was 0.2%, with the Dow Jones falling 1.9% since the Donald Trump Administration’s failure to pass their healthcare bill. Admittedly, the loss in 2011 was much greater (-6.7%).
The S&P 500 fell 0.1%, however mid- and small-cap stocks rallied. The Nasdaq gained 0.2% and the Russell 2000 rose a like amount.
Biotechnology stocks rebounded with the iShares Nasdaq Biotechnology Index (ETF) (NASDAQ:IBB) gaining 1.1%.
Crude oil (WTI) for May delivery fell 0.5% to $47.73 per barrel. Gold prices rose to a high for the month, a reaction to a weaker dollar and doubts over future legislation. Gold (April) gained 0.6% to $1,255.70 per ounce, which is its highest close since Feb. 27.
At the close, the Dow Jones Industrial Average fell 46 points at 20,551, the S&P 500 lost 2 at 2,342, the Nasdaq gained 12 points to close at 5,840, and the Russell 2000 closed at 1,357 for a gain of 3 points. The NYSE’s primary exchange traded 826 million shares with total volume of 3.2 billion shares, and the Nasdaq crossed 1.7 billion shares. On the Big Board, advancers outpaced decliners by a small amount, and on the Nasdaq, advancers led by 1.3-to-1. Blocks on the NYSE increased to 6,228 from 6,174 on Friday.
As noted on the chart, a rally in the last 90 minutes saved the S&P 500 from closing below its 50-day moving average. This would be a negative development and would set the index up for a test of the 2,277 to 2,301 support zone. Low-volume selling throughout the session and an oversold MACD indicator are indications that the sell-off may be running out of steam.
Conclusion: The lack of sellers and a rally at the end of the day saved both the Dow Jones Industrial Average and the S&P 500 from closing below their respective 50-day moving averages. Low volume has characterized both adjustments. And small- and mid-cap stocks have ignored much of the pullback — all positive indicators.
Nevertheless, the bulls would welcome a solid rally from current levels that would challenge the highs of the two major indices, the Dow Jones and the S&P 500.
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.
Tell us what you think about this article! Drop us an email at editor@investorplace.com, chat with us on Twitter at @InvestorPlace or comment on the post on Facebook. Read more about our comments policy here.
