This Market Dispersion Is A Wake Up

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 1 points on the day and closed at 268. For the S&P 500, there is support near 2950 and 2932. Resistance levels are currently at 2984 and 3002.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 8 of the 12 major market sectors are seeing red today. The biggest losers are Energy (XLE), Retail (XRT), and Transportation (XTN). The strongest sector today has been Utilities (XLU) which has gone up 0.9%.

The CBOE Volatility Index (VIX) is down $-1.23 going from $14.16 to $12.93 today. Both Call and Put volumes are below average today. The ratio of puts to calls for the current at-the-money strike of $14 is below average which means that traders are favoring Calls over Puts currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is Overstock.com Inc (OSTK). No AMEX names had significant interest, and on the NYSE Maxar Technologies Inc (MAXR) has had unusual volume.

The biggest mover out of other high-volume stocks is Maxar Technologies Inc (MAXR) which has moved up over 18% recently on volume of over 8 million shares. The chart below shows the performance of MAXR over the last year. Maxar Technologies, Inc. is a provider of advanced space technology solutions.

DARWIN MAXAR TECHNOLOGIES INC FORECAST

The performance of Maxar Technologies Inc (MAXR) will be worth watching in the near term for a number of reasons. The forecast for the coming week on MAXR is for the price to go down. The correlation of MAXR to the S&P 500 recently has been 0.8 which is quite a strong positive correlation. Key levels to watch for MAXR are downside support at the $6 and upside resistance at the $11 price points.

Trade smart,

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