The Dow Jones Industrial Average has consistently moved to triple digits every day, even with the significant weaknesses in the market last week which didn’t happen again for quite some time now. This weakness was quite predictable though, which is why investors didn’t worry a thing regarding their stocks.
The weakness in the market was expected last week because of various reasons and one of them is the fact that the week followed a triple witching experience which happened in Friday. It is negative and it’s normally the case every time. If it all, there was nothing about last week that contributed to the increased market turbulence and volatility.
Market weakness will likely be observed in the next coming weeks but don’t be too surprised if this happens. Taking into consideration the Hong Kong violent protests over China’s control that adds more to the global turmoil, this week might be a little tough in the stock market.
Even with the promise of stocks to stay in good shape based on the technical picture and individual sector rankings, more downside are still expected. This week, Telecom is in the cellar with this sector showing the lowest scores in Consumer Services. Telecom stayed in the bottom rank even though there’s high long-term forward growth rate.
Overall, the rankings of various sectors are looking more on the neutral side. Stocks are in good shape and despite the expected downside so there’s still a glimmer of hope that the way stocks would trade this week will be a little better than the last.
