WEEKLY MARKET ANALYSIS
Stocks opened modestly lower but the decline reversed but more modestly intra-day into the close. The Dow Jones Industrial Average ETF DIA was up from the open print .54 points on the day and closed at 260.54. For the S&P 500, there is support near 2781 and 2768. Resistance levels are currently at 2809 and 2822. The oil divergent flush could be a canary to keep an eye on.
GLOBAL ASSETS UPDATE
TWELVE SECTOR ANALYSIS
On Wall Street, 8 of the 12 major market sectors are seeing green today. The biggest gainers are Financial (XLF), Technology (XLK), and Pharmaceuticals (XPH). The weakest sector today has been Transportation (XTN) which has declined -0.6%.
The CBOE Volatility Index (VIX) is up $0.01 going from $15.16 to $15.17 today. The ratio of puts to calls for the current at-the-money strike of $15 is below average which means that traders are favoring Calls over Puts currently.
A NASDAQ stock with unusually high volume today is Centennial Resource Developmen (CDEV). On the AMEX Contango Oil & Gas Company (MCF) has had significant interest, and on the NYSE Dillard’s, Inc. (DDS) has had unusual volume.
The biggest mover out of other high-volume stocks is Centennial Resource Developmen (CDEV) which has moved down over -23% recently on volume of over 16 million shares. The chart below shows the performance of CDEV over the last year. Centennial Resource Development, Inc.
DARWIN CENTENNIAL RESOURCE DEVELOPMEN FORECAST
The performance of Centennial Resource Developmen (CDEV) will be worth watching in the near term for a number of reasons. The forecast for the coming week on CDEV is for the price to go up. The correlation of CDEV to the S&P 500 recently has been -0.4 which is a weak negative correlation. Key levels to watch for CDEV are upside resistance at both the $12 and $16 price points.
Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network