NEW YORK (TheStreet) -- The U.S. stock indexes finished off the holiday-shortened trading week with three of the four indexes on the upside. The S&P 500, Nasdaq and the Russell 2000 finished the week on the upside but the DJIA closed Thursday trading with a loss.
The Nasdaq finished at 4095.52, up 9.29 points on Thursday and up 95.79 points for the week. The Russell 2000 finished up 26.46 points to close at 1137.90 and the S&P finished up 49.16 for the week, closing at 1864.85. The DJIA finished down 16.31 points on Thursday, but up 381.79 points for the week, closing at 16408.54.
The S&P and DJIA continue to be Trend Bullish while the Nasdaq and Russell 2000 indexes are Trend Bearish from a three-month or more time frame. The volume on Thursday was the lowest of the entire week. That was not totally unexpected as traders made for a long holiday weekend.
So the question is, where do the markets go from here come next week? I am of the belief that the markets will have a selloff in the early part of the week. There was not much buying power behind this massive move to the upside this week, according to my internal algorithm numbers. The selloff last Thursday and Friday, a week ago, had much more force to the downside than this four-day up move this week.
We will know soon enough if this bullish trend move in the DJIA and S&P was for real or just a relief rally from the Trend Bearish condition. The fact that the Nasdaq and Russell 2000 have not joined the DJIA and S&P is of concern. Again, we cannot have two different stock markets. Thus, be careful and patient next week as we sort out this holiday-shortened trading week that we just finished.
Earnings season is in full force right now. We are getting a mixed bag with winners and losers. Keep in mind the Nasdaq and Russell 2000 are still down for the year, with both indexes negative by more than 6%. The utilities and commodities stocks lead to the upside. Thus, there are many crosscurrents going on. However, we are not receiving much help to the upside from the growth leaders. That is always a concern going forward.
I once again finished this trading week in cash after selling my Live Deal (LIVE) position that I purchased at the end of trading on Wednesday. The gain was massive as the shorts came in to cover their positions. A great way to finish the trading week with a winning percentage of over 90% since our inception last July at our website.
At the time of publication the author had no position in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.