This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

This Week's Closes Could Confirm Cycle Highs

NEW YORK ( TheStreet) -- August ended with negative weekly chart profiles for Dow Industrials, S&P 500 and Dow transports, but not for the Nasdaq or Russell 2000.

The Russell 2000 ended August at 1,010.90 below its five-week modified moving average at 1024.96, but its 12x3x3 weekly slow stochastic reading is 81.85 still above the overbought threshold of 80.00. Odds favor that this measure of technical momentum will be declining below 80.00 this week, which would match the negative profiles of the industrials, S&P and transports.

The major focus is thus on the Nasdaq, which ended August right on its five-week MMA at 3589.87 with its 12x3x3 weekly slow stochastic reading at 86.65 still well above 80.00. The Nasdaq needs a weekly close below 3589 with this mojo measure declining below 80.00, which may have to wait until the second Friday of September.

Here's my Market Pulse as September begins: The Russell 2000 and Nasdaq are the year to date leaders up 19.0% and 18.9% respectively. The Dow Industrial Average has become the laggard up 13% on the year. The biggest loser since setting a new all time high at 6686.86 on Aug. 1 is the Dow transportation average down 6.5% since then. This table shows the '% Upside' to my semiannual risky levels and the '% Down' to my annual value levels. If all five major averages confirm negative weekly chart profiles the downside risk in terms of the Nasdaq is 21.8% by year end.

You can trade the Dow Industrials using SPDR Dow Jones Industrial ETF Trust (DIA) ($147.85) broke below its 50-day SMA at $152.57 on August 15 and has its sight on a test of the 200-day SMA at $144.12.

The weekly chart profile is negative with the five-week MMA at $151.27. My quarterly value level is $142.41 with a semiannual pivot at $147.00 and weekly risky level at $153.60. My annual value level is $126.69 with my semiannual risky level at $164.69.

You can trade the S&P 500 using SPDR S&P 500 ETF Trust (SPY) ($163.65) which broke below its 50-day SMA at $166.01 on Aug. 27 with its 200-day SMA at $156.34. The weekly chart profile is negative with the five-week MMA at $166.07. My quarterly value level is $152.34 with a semiannual pivot at $160.60 and weekly risky level at $171.60. My annual value level is $134.74 with my semiannual risky level at $174.10.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DIA $182.68 0.00%
QQQ $109.38 0.00%
SPY $211.49 -0.24%
AAPL $129.09 0.00%
FB $79.75 0.00%


DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs