The DJIA closed down 61.49 points to 16987.51 after being down over 100 points earlier in the day. The S&P 500 lost 11.91 to close at 1985.54. The Nasdaq was lower by 24.21 at 4567.59 and the Russell 2000 was down 1%, losing 11.74 to finish at 1160.61. The Russell 2000 is once again negative in 2014.
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As I have mentioned before, volume decelerates on up days and accelerates on down days. The S&P 500 Trust Series ETF (SPY) volume came in over 117 million shares traded on Friday, over 50 million more shares traded versus Thursday.
My internal S&P 500 daily trading range for Friday was Buy Trade: 1982 and Sell Trade: 2001. The actual low for the S&P was 1980.26 and the high for the day was 1996.74. In other words, the S&P bounced higher off of the buy signal and went lower off of the sell signal on Friday. I do not use the old Wall Street indicators such as moving averages.
I expect both the bond market and gold market to move higher next week. Both the Barclays 7-10 Year Treasury Bond Fund (IEF) and the Barclays 20+ Year Treasury Bond Fund (TLT) are approaching extraordinarily oversold signals, according to my algorithm process.