Looking For Strength In Last Week's Market

Traders work on the (NYSE) on June 10, 2019 (Photo by Spencer Platt/Getty Images)

Traders work on the (NYSE) on June 10, 2019 (Photo by Spencer Platt/Getty Images)

It was another positive week for most stock market averages and the ETFs that track the major sectors. Only the Energy Sector Select (XLE) was under serious selling pressure, closing the week down 4.25%.

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Tom Aspray - ViperReport.com

The positive market performance was moderately encouraging in light of the increased global tensions and more signs of deterioration in China’s economy. The Dow Jones Transportation Average (TRAN) had the week’s best gain, up 1.62%. Only the Dow Jones Utility Average (UTIL) was also up more than 1% for the week. The other averages recorded only moderate gains as the weekly advance/decline data was positive, but not impressive. For the NYSE, there were 1638 stocks advancing last week and 1410 stocks declining.

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Tom Aspray - ViperReport.com

The weekly chart of TRAN shows that it dropped below the yearly pivot two weeks ago with a low of 9715. It is important to note that the weekly support (line b) was broken at the end of April and last week’s close was still below the 20-week EMA. The weekly downtrend (line a) and much more important resistance is in the 11,000 area.

The weekly relative performance (RS) formed lower highs and lower lows in 2018, which is not a positive sign. The RS has turned up recently, but is well below its declining WMA. The On Balance Volume (OBV) does look much more positive as it shows a solid uptrend (line d) from the May 2018 lows. The OBV has just moved back above its WMA which is a good sign.

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Tom Aspray - ViperReport.com

The Invesco QQQ Trust (QQQ) that tracks the Nasdaq 100 was up 0.88% last week but closed near the week’s low. This doji formation is often followed by a further decline. There is initial support in the $180 area with the flat 20-week EMA at $178.86. The weekly Nasdaq 100 A/D line is above its WMA and also above support (line b). The daily A/D line (not shown) is above its rising WMAs and positive. There is first support for QQQ in the $185.40-$186 area.

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