Market is a Little Shaky…Watch this MO Close

WEEKLY MARKET ANALYSIS

Stocks opened modestly lower but the decline reversed and accelerated during the day into the close. The Dow Jones Industrial Average ETF DIA was up 0.09 points on the day and closed at 261.6. For the S&P 500, there is support near 2874 and 2864. Resistance levels are currently at 2896 and 2906.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 8 of the 12 major market sectors are seeing green today. The biggest gainers are Financial (XLF), Technology (XLK), and Retail (XRT). The weakest sector today has been Utilities (XLU) which has declined -0.5%.

The CBOE Volatility Index (VIX) is up $6.84 going from $2881.37 to $2888.21 today. The ratio of puts to calls for the current at-the-money strike of $2885 is below average which means that traders are favoring Calls over Puts currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is First Solar, Inc. (FSLR). On the AMEX McClatchy Co (MNI) has had significant interest, and on the NYSE Pentair PLC (PNR) has had unusual volume.

The biggest mover out of other high-volume stocks is Pentair PLC (PNR) which has moved down over -14% recently on volume of over 0 thousand shares. The chart below shows the performance of PNR over the last year. Pentair plc is a diversified industrial manufacturing company.

DARWIN PENTAIR PLC FORECAST

The performance of Pentair PLC (PNR) will be worth watching in the near term for a number of reasons. The forecast for the coming week on PNR is for the price to go down. The correlation of PNR to the S&P 500 recently has been 0.1 which is a weak positive correlation. Key levels to watch for PNR are upside resistance at both the $42 and $41 price points.

Trade smart,

Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network