There was no lack of drama in the final day of equity trading in what was a wild ride in August. The S&P 500 opened strongly and then gave it all back to trade in negative territory at midday. However some steady bids emerged in the afternoon before a massive wave of buying late.
Much of it was likely technical into a month-end long weekend but it wraps a bow on a lively one.
S&P 500 1.0%Nasdaq Comp +1.1%DJIA +0.6%Russell 2000 +0.3%Toronto TSX Comp +0.2%
On the week:
S&P 500 +0.25%Nasdaq Comp -0.9%Russell 2000 -0.4%Toronto TSX Comp -0.1%
On the month:
S&P 500 +2.3%Nasdaq Comp +0.6%DJIA +1.8%Russell 2000 -2.0%Toronto TSX Comp +0.6%
Those monthly numbers aren’t impressive at first blush but they come after massive selling at the outset.
The Nasdaq Composite monthly chart now shows a double doji. That’s a setup for a big move to come. Given the impressive recovery from the August declines, I’ll take the upside but it’s tough to have confidence after the Nvidia decline and with a negative September seasonal backdrop.
This article was written by Adam Button at www.forexlive.com.
