Weekly Technical Commentary by Art Huprich - Friday Morning 02/20
A further collapse in the financial complex (please accept the importance that this group plays on the actual and psychological direction of the stock market), which included some awful tape action by many insurance related stocks (technically weak names in the insurance complex will follow in the future) coupled with the collateral effects from HPQ ($31.39/Strong Buy), produced yesterday’s very disappointing session. The DJIA lost almost 90 points and the NASDAQ was down by 25 points. On the NYSE volume marginally expanded to 1.48 billion shares. There were 1380 net declining stocks. The Oversold – Overbought Oscillator closed at minus 6.0, officially entering “oversold” territory. The Index P-C Ratio ended at 150% and I guess that its recent relatively high readings are related to today’s expiration activity. Conclusion
The DJIA (7465.95) closed below its November 2008 low, turning its secondary trend to “down.”
The S&P 500 (SPX/778.94) is trading above its November 2008 support lows of 752.44 (closing low) and 741 (intraday low). Its secondary trend is still “neutral,” as is the case for the other stock market indices, with the exception of the DJIA.
Let me please reiterate and expand my thoughts from Wednesday, following Tuesday’s nearly 300 point decline by the DJIA, specifically:
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