SPDR S&P 500 ETF (ETF:SPY), (DJIA) – ‘Natural Period Of Consolidation’: Stock Market Update For The Week Ahead
The Past Week, In A Nutshell
What Happened: Last week ended negative with mega-cap and technology stocks regaining strength into week-end.
Remember This: “Markets had embedded substantial optimism in early September, with the valuation of the S&P 500 at the highest level in 20 years and sentiment at extreme highs, setting the stage for a natural period of consolidation,” noted Mark Hackett, chief of investment research for Nationwide.
“Investors are now struggling to find a positive catalyst, as the prospect for fiscal stimulus fades, economic data begin to reflect rising coronavirus cases and earnings season remains a month away.”
Pictured: Profile chart of the Micro E-mini S&P 500 Futures
Broad-market equity indices ended lower with the S&P 500 correcting as low as $3,200.
Recapping Last Week’s Action: Monday’s test of the $3,200 high-volume area offered responsive buyers an opportunity to get in at favorable prices. Buying continued through Tuesday,