Stock market 5th week winning streak seems to an end after oil and financial slide down the stock market in the morning. Dow jones index had 5 week winning streak after 5 month. S&P 500 and Dow jones industrial average came back to the high of the year after having two losing month in a row. But this winning streak seems to halt for this week and may be a possible pullback for the market is expected. Today job less claim was as expected. Slightly higher jobless claim 265000 than the 4 week moving average 259000.
Dow jones industrial average: Dow Jones index came down to its long term trend line and started to pull back and closed positive at the end of the day because of oil upward move at the end of the day. This is kind of good sign. Now we have to see how market reacts next week open.
XLF (Financial ETF of S&P 500) is performing weak this year . ETF is still far away from its long term downtrend and now holding on the long term support line, which is also august 24 2015 opening price area. XLF is holding below long term down trend, 100 day and 200 day moving average. Most of components of the ETF (Including Wall Street heavy weight Goldman Sachs, Wells Fargo, Morgan Stanly) also look very weak. Even market was down in the morning because of financial sector and oil performance.
S&P 500 index: Just like Dow Jones industrial average index, SP 500 also had a down week after 5 week winning streak. S&P came down to its long term down ward resistance line and right above the 200 day simple moving average. Index got support at that point because of oil price recovery and started heading toward the upward and closed above the opening price. This is bullish reversal sign for the index.
IWM (Russell 2000 index): looks weak .Index tried to break its long term downward trend line and closed above the 100 day moving average but failed to hold above 100 day moving average and break the down trend. Now index gets support its short term support area between 105 and 108, which is also august24, 2015 index low area. From weekly chart, IWM needs lot of strong support to break this down trend and this index is still on bearish territory.
IBB is a biotech ETF. IBB made almost 230 percent move in the last 4 years. Even in the 2015, ETF had the positive return. However, this year IBB looks weak. ETF is holding below all the major moving average and its long term down trend.