The Quant View: Heading Towards Major Support By David Brown | June 22, 2009

30 Jun 1:22am
The Quant View: Heading Towards Major Support By David Brown | June 22, 2009


As I write this today (Monday, June 22), the market is quite weak on a very broad basis, with only the Utilities sector in positive territory. Last week, virtually every style/cap component of the market was down about 3%. Mid-cap did the worst (down 3.6%) and large-cap growth did the best, but everything was down more than 2%. As the market continues its meandering path toward major support, is a tradable bounce in our near future?

Once again, both the general news and economic news were relatively positive, but the market continues its technically related sell-off. Today, the S&P500 remained below 900 for most of the day and closed at the low. It seems to have its sights set on important support around 880.

Last week, Health Care was the only positive sector of the week, up about 1.5%, while Consumer Staples and Utilities had minimal losses. Industrials, Energy and Materials had major losses, exceeding 5%. Recall that Utilities has been at the top of our forward-looking sector rankings for the past few weeks, while Materials has been at the bottom.


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The Quant View: Heading Towards Major Support By David Brown | June 22, 2009

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