Stock Market Indicators: 2-Day Moving Averages December 21, 217 Dr. Ed Yardeni 516-972-7683 eyardeni@ Joe Abbott 732-497-536 jabbott@ Debbie Johnson 48-664-1333 djohnson@ Mali Quintana 48-664-1333 aquintana@ Please visit our sites at www. blog. thinking outside the box
Table Of Contents Table Of Contents S&P 5 Moving Averages 1-2 Dow & Nasdaq Moving Averages 3 S&P 5 Sectors Stock Price Index & 2-dma 4 S&P 5 Sectors Stock Price Index Minus 2-dma 5 2-Day Moving Averages 6-7 December 21, 217 / 2-Day Moving Averages www.
S&P 5 Moving Averages 3 275 25 Figure 1. S&P 5 BULL & BEAR MARKETS & CORRECTIONS: 28-217 (ratio scale) 3 275 25 225 225 2 2 175 175 125 125 1 2-day moving average 1 75 75 5-56.8% (517) -16.% (7) -19.4% (7) -9.8% (28) -9.9% (6) -7.7% (62) -5.8% (34) 28 29 21 211 212 213 214 2 216 217 218-5.8% (19) -7.4% (28) -12.4% (96) -13.3% (1) Note: Corrections are declines of 1% or more, while minor ones are 5%-1% (all in blue shades). Bear markets are declines of 2% or more (in red shades). Number of calendar days in parentheses. Source: Standard & Poor s. 5 3 25 2 1 5-5 -1 - -2-25 -3-35 -4-45 Figure 2. S&P 5 INDEX (as a percent of 2-day moving average) % from 2-day moving average (8.3) Source: Standard & Poor s. 3 25 2 1 5-5 -1 - -2-25 -3-35 -4-45 Page 1 / December 21, 217 / 2-Day Moving Averages www.
S&P 5 Moving Averages 8 7 Figure 3. S&P 5 TRANSPORTATION INDEX (ratio scale) 8 7 6 6 5 5 4 4 3 3 2 S&P 5 Transportation Index (733.13) 5-day moving average (68.97) 2-day moving average (65.42) 2 1 Source: Standard & Poor s Corporation. 1 26 22 Figure 4. DOW JONES INDUSTRIALS AVERAGE: 28-214 (ratio scale) 12/21 26 22 18 18 14 14 1 Dow Jones (24782.29) 5-day moving average (23734.31) 2-day moving average (2212.65) 1 6 Source: Haver Analytics. 6 Page 2 / December 21, 217 / 2-Day Moving Averages www.
12 1 Figure 5. Dow & Nasdaq Moving Averages DOW JONES TRANSPORTATION INDEX: 28-214 (ratio scale) 12 1 8 8 6 6 4 4 Dow Jones Transporation Index (1628.74) 5-day moving average (9934.94) 2-day moving average (9467.47) 2 Source: Haver Analytics. 2 Figure 6. 7 NASDAQ 12/21 6 (ratio scale) 5 7 6 5 4 4 3 3 2 2 Nasdaq (6965.36) 5-day moving average (6771.2) 2-day moving average (6343.9) 1 Source: Haver Analytics. 1 Page 3 / December 21, 217 / 2-Day Moving Averages www.
9 7 5 3 Figure 7. S&P 5 Sectors Stock Price Index & 2-dma CONSUMER DISCRETIONARY* INDUSTRIALS 75 625 5 375 25 1 6 7 8 9 1 11 12 13 14 16 17 18 19 6 7 8 9 1 11 12 13 14 16 17 18 19 125 675 575 475 CONSUMER STAPLES INFORMATION TECHNOLOGY 1375 175 775 375 275 475 175 6 7 8 9 1 11 12 13 14 16 17 18 19 6 7 8 9 1 11 12 13 14 16 17 18 19 175 9 75 6 45 ENERGY MATERIALS 5 4 3 2 3 6 7 8 9 1 11 12 13 14 16 17 18 19 6 7 8 9 1 11 12 13 14 16 17 18 19 1 825 675 525 375 FINANCIALS TELECOMMUNICATION SERVICES 235 195 5 225 Includes Real Estate through September 216 1 75 6 7 8 9 1 11 12 13 14 16 17 18 19 6 7 8 9 1 11 12 13 14 16 17 18 19 75 1225 125 825 625 HEALTH CARE UTILITIES 35 3 25 2 425 225 6 7 8 9 1 11 12 13 14 16 17 18 19 6 7 8 9 1 11 12 13 14 16 17 18 19 1 2-day moving average * S&P 5 sector price indexes on ratio scales. Source: Haver Analytics and Standard & Poor s Corporation. Page 4 / December 21, 217 / 2-Day Moving Averages www.
6 4 2-2 -4-6 S&P 5 Sectors Stock Price Index Minus 2-dma Figure 8. CONSUMER DISCRETIONARY (% from 2-day moving average) (8.8) INDUSTRIALS (8.3) 4 2-2 -4-6 3 CONSUMER STAPLES INFORMATION TECHNOLOGY 5 25 - (3.5) (12.6) -25-3 -5 4 2 ENERGY MATERIALS 4 2-2 -4 (5.5) (8.5) -2-4 -6-6 5 25 FINANCIALS TELECOMMUNICATION SERVICES 3-25 -5 (11.8) (5.) - -3-75 -45 3 HEALTH CARE UTILITIES 3 - -3-45 (5.5) (-.7) - -3-45 Source: Haver Analytics and Standard & Poor s Corporation. Page 5 / December 21, 217 / 2-Day Moving Averages www.
9 Figure 9. S&P 5 SECTOR PRICE INDEXES* (2-day moving average, ratio scale) 2-Day Moving Averages 9 75 75 6 6 45 45 3 2-Day Moving Average Consumer Disrcretionary (72.8) Consumer Staples (566.6) Health Care (914.7) Information Technology (994.4) 3 * S&P 5 sector price indexes on ratio scales. Source: Standard & Poor s. 9 8 7 6 5 Figure 1. S&P 5 SECTOR PRICE INDEXES* (2-day moving average, ratio scale) 9 8 7 6 5 4 4 3 3 2 2-Day Moving Average Energy Materials Industrials 2 1 1 * S&P 5 sector price indexes on ratio scales. Source: Standard & Poor s. Page 6 / December 21, 217 / 2-Day Moving Averages www.
6 55 5 45 4 35 3 25 Figure 11. S&P 5 SECTOR PRICE INDEXES* (2-day moving average, ratio scale) 2-Day Moving Averages 2-Day Moving Average Financials Telecommunication Services Utilities 6 55 5 45 4 35 3 25 2 2 1 1 * S&P 5 sector price indexes on ratio scales. Source: Standard & Poor s. Page 7 / December 21, 217 / 2-Day Moving Averages www.
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