Market Recap For 8/26/2015

The market finally closed with a green day after six consecutive down days. Once again, the index futures were positive coming into the opening bell this morning. Similar to yesterday, the market started to fade soon after the open. In the noon hour, it was like deja-vu when most of the earlier gains evaporated. The A/D also faded from the open at a level above 1800 to near the zero line for the NYSE, and the A/D line for the Nasdaq went below zero (declining issues outnumbered advancing issues) for a brief period before it reverted to positive. Unlike yesterday, when the market was fading today, the U/DVOL was expanding upward. This was a sign that the selling has reached exhaustion, at least for today. The only time the U/DVOL looked as it was going into the negative territory was when the market printed the LOD (low of the day). After the LOD was made, the U/DVOL expanded upward and the A/D rotated up, and the market rallied into close.

The SP500 closed at 1940.51, up 72.90 or 3.90%. The 1972.56 continues to be the near term potential resistance, and the October 15, 2014 close is the potential support.

SPX

(click on the chart to enlarge)



The SPY finished the session at 194.46, a gain of 7.19 or 3.84%. The potential resistance and support remain the same, 197.91 and 181.92 respectively.

SPY




The Nasdaq 100 closed with a gain of 203.28 or 5.06% at 4219.60. The potential resistance and support remain to be 4278.14 and 3765.28 respectively.

NDX




The Russell 2000 closed at 1132.09 with a gain of 28.09 or 2.54%. The 2/2/15 close at 1175.51 is the potential resistance and the potential support remains to be at 1049.30.

RUT




After six consecutive down days along with huge losses, the market was due for a bounce. Whether today’s bounce is the beginning of a reversal process or simply an oversold rally remain to be determined. Monday August 24, 2015 extreme breadth level appeared to be the internal bottom for this pullback. Yesterday’s corrective closing low accompanied by improved breadth is a sign that the worst might have past. A retest of the recent intraday low is still possible, even a lower low could materialize. Until the market has reclaimed some previous support turned resistance levels, one should continue to be cautious and remain patient.