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 down 0.7 points on the day and closed at 261.69. For the S&P 500, there is support near 2853 and 2839. Resistance levels are currently at 2881 and 2895. Todays action was tight and made for an inside day which means we should see a decision for next move, which should be an upward bias.
GLOBAL ASSETS UPDATE
TWELVE SECTOR ANALYSIS
On Wall Street, 7 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 Technology (XLK) which has gone up 0.4%.
The CBOE Volatility Index (VIX) is down $-0.26 going from $13.62 to $13.36 today. Call volumes are below average today but Put volumes are higher than average. The ratio of puts to calls for the current at-the-money strike of $13 is above average which means that traders are favoring Puts over Calls currently.
A NASDAQ stock with unusually high volume today is Sangamo Therapeutics Inc (SGMO). On the AMEX McClatchy Co (MNI) has had significant interest, and on the NYSE Pimco High (PHK) has had unusual volume.
The biggest mover out of other high-volume stocks is Sangamo Therapeutics Inc (SGMO) which has moved up over 29% recently on volume of over 22 million shares. The chart below shows the performance of SGMO over the last year. Sangamo Therapeutics, Inc., formerly Sangamo BioSciences, Inc., is a clinical-stage biotechnology company.
DARWIN SANGAMO THERAPEUTICS INC FORECAST
The performance of Sangamo Therapeutics Inc (SGMO) will be worth watching in the near term for a number of reasons. The forecast for the coming week on SGMO is for the price to go down. The correlation of SGMO to the S&P 500 recently has been 0.4 which is a weak positive correlation. Key levels to watch for SGMO are downside support at the $9 and upside resistance at the $12 price points.
Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network