The Standard and Poors 500 index (SPX) closed today at 5,969, up 21 points or +0.4%. SPX opened the week at 5,874, gaining 1.6% for the week. Trading volume ran along the 50-day moving average (dma) all week.

VIX, the volatility index for the S&P 500 options, opened the week at 16.6% and closed today at 15.2%, slightly higher mid-week, but VIX declined today.



I track the Russell 2000 index with the IWM ETF, which closed today at 238.7, up four points or +1.9% on the day. IWM opened the week at 229.2 for a weekly gain of +4.1%. IWM led the broad market averages higher this week. IWM trading volume declined slightly as the week worn on.

The NASDAQ Composite index closed today at 19,004, up 61 points or 
+0.2%. NASDAQ opened the week at 18,718, setting up a weekly gain of 1.5%. NASDAQ’s trading volume ran above the 50 dma all week except for Wednesday.

The markets reversed course from last week and traded higher this week. The S&P 500 stocks rose 1.6% this week; the NASDAQ Composite tacked on 1.5%. But the Russell 2000 index was running hard, up 4.1%. Russell’s gain is very encouraging as this index consists of smaller high beta stocks. These are the stocks the large funds turn to build their returns when they anticipate smooth sailing ahead. Conversely, they are the first stocks to be sold when the storm clouds are feared.

As you may recall from last week’s newsletter, I was seeing some signs of a possible recovery this week after the ugliness last week. However, I am a little scarred from the last couple of months of a very choppy market. I am focusing on the large cap tech stocks for a safe vehicle for this apparent bull run.