On Monday, July 27, 2015, the Dow tested its July 7th low (17465) and actually went a bit lower to 17399 however, the other major indices did not reach their respective July 7th lows (except the small cap index, the Russell 2000).
July 7th low July 27th low
S&P 500 2044 2063
Nasdaq 4902 5025
Nasdaq 100 4344 4506
(mostly high tech)
Russell 2000 1225 1205
(small cap index)
Please remember, the Dow index only has 30 stocks and the others indices are much broader in scope and therefore much more representative of overall market direction.
As of now, we view broader indices (with the exception of the small cap index) not violating the July 7th lows as a positive but we are cautiously watching today’s (7/29) Fed meeting results (will they raise rates?) and the 2nd quarter GDP report (tomorrow) for possible change in market direction.
Stay tuned and we will keep you posted…….