August seemingly withdrew July’s promise of a nascent recovery into the second half of 2010 as the words “double dip” came back into common parlance. The S&P 500, Dow Jones Industrials and NASDAQ 100 cash indices finished lower for the month by -4.74%, -4.31%, and -5.18%, respectively. This left the three major indices down on the year by -5.90%, -3.96%, and -4.99%.
Can the early September gains take hold? News flow remains mixed and significant resistance remains above. Even as certain intermediate-term models look set to go back on a “buy”, the only certainty for now would appear to be a bumpy road ahead.
Sentiment: Negative
Volatility: Moderate (VIX 22-28)
Direction: Negative
The Style-Box was calculated using the following PowerShares™ ETFs: Small-Growth (PWT), Small-Value (PWY), Mid-Growth (PWJ), Mid-Value (PWP), Large-Growth (PWB), and Large-Value (PWV). The Sector-Ribbon was calculated using the following Select Sector SPDR™ ETFs: Materials (XLB), Industrials (XLI), Energy (XLE), Staples (XLP), Discretionary (XLY), Financials (XLF), Technology (XLK), and Healthcare (XLV). The Standard & Poors 500, Dow Jones Industrial Average and NASDAQ 100 may be traded through ETF proxies, including the SPY or IVV, DIA and QQQQ, respectively.
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