NEW YORK (TheStreet) -- The stock indexes finished the trading week on an up note.
The S&P 500 gained 1.70% on the week to close at 2102.06 while the DJIA was higher by 1.66% on the week to close at 18,057.65. The Nasdaq gained 2.23% for the week to finish at 4,995.97 wile the Russell 2000 closed higher by 0.73% to finish at 1,264.77.
Yet, the S&P 500 Trust Series ETF(SPY) - Get Report volume set a new low volume day for 2015, coming in at just over 70 million shares traded. This is a negative divergent indicator as the indexes move higher. Volume matters when indexes move higher on light trading days.
Going into next week, the stock indexes could become overbought on a daily basis if they continue to move higher. Traders should continue to stay cautious and opportunistic. The best way to buy stocks is when they have oversold signals on a daily basis. Risk decreases for traders when they stick with oversold signals and don't allow emotion to enter into the trade.
As we predicted on Wednesday, CME Group(CME) - Get Report and Urban Outfitters(URBN) - Get Report were ripe for buying. Both ended higher on the week. The Direxion Daily Russia Bear 3x(RUSS) - Get Report was oversold and closed higher by 11% on Friday.
Currently, only ServiceMaster Global Holdings(SERV) - Get Report is the only large cap stock with an oversold signal. Below is a chart showing the uptrend on a daily basis along with the oversold signal. It should move higher over the next few trading days.
This article is commentary by an independent contributor. At the time of publication, the author held RUSS.