SPX Recap

As the Friday open approached futures were on a four point bounce after the overnight lows around 5:00 am and were at the overnight highs. Asia had closed consistently green and Europe was mixed.

The February options expiration session opened without a significant gap and traded slightly downward for several minutes before beginning to ascend. This session avoided the first hour lows and gently traded upward to the high of the day at 12:27 before an almost six point sell-off leading up to 2:30. But the final ninety minutes of the week were a very low volume rally as the index managed to close back near the highs of the day.

The pattern of closing at the highs has been persistent. In the last fourteen sessions the SPX has closed in the top 15% of the daily range eleven times and only once in the bottom 60% of the intraday range. But today was different in a couple of regards. The NASDAQ 100 (Qs) was down for the day, the second consecutive day and Russell 2000 closed lower than the open. So there may be a few signs of weakness creeping in, although in this strong uptrend that may mean little.

Checking the Market Leaders board we find a mixed board with the Russell Technology and Sox both closing lower. But half of the leader board closed at new 52 week highs so the market rally continues.




It’s interesting to notice that advancing volume was only equal to declining volume when advancing issues were 1.37 to one advancing. Volume Friday was dismal; all the volume was at the open.


Sectors stronger than the SPX for Friday:
- Energy -- Outperformed the SPX by +32%.
- Financials -- Outperformed the SPX by +10%.
- Industrials -- Outperformed the SPX by +9%.
- Consumer Staples -- Outperformed the SPX by +8%.
- Health Care -- Outperformed the SPX by +6%.
- Consumer Discretionary -- Outperformed the SPX by +34%.

Sectors weaker than the SPX for Friday:
- Basic Materials -- Underperformed the SPX by -129%.
- Technology -- Underperformed the SPX by -34%.
- Utilities -- Underperformed the SPX by -3%.