It was one of those weeks! The stock market traded in a relatively flat range, although there were a few bursts of volatility. Overall, things were relatively stable, with the broader indexes staying within last Friday’s trading range.
We did get a little bit of a scare on Thursday when “credit cockroaches” started crawling into the headlines. Fortunately, that concern faded almost as quickly as it appeared.
Here’s how the indexes wrapped up for the week.
Dow Jones Industrial Average ($INDU): 46190.61 (+1.56%)
S&P 500 ($SPX): 6664.01 (+1.70%)
Nasdaq Composite ($COMPQ): 22679.97 (+2.14%)
Last week, we talked about the divergence between the S&P 500 and the NYSE Advance-Decline Line. That divergence remains in play (click here for chart).
Volatility creeps higher, but it’s not time to panic
This week, our attention turns to volatility. The Cboe Volatility Index ($VIX) popped above 20, a reminder that the market can and will surprise us. We’re nowhere near panic levels, but when the stock market is overstretched, it’s not surprising to see volatility spike. Investors get nervous and may be more inclined to sell rather than buy the dip.
The VIX flirted with 30 but eased back by Friday’s close. And to keep it in perspective, it’s still miles away from the +50 spike we saw during the April low. So while we are seeing some bumps, it’s not time to hit the panic button.
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StockCharts Tip: To see settings, click the above chart.
The good news is that the uptrend in the S&P 500 is still in play, and bank earnings have kicked off on a strong note. With more companies reporting in the coming weeks, there’s a lot to watch. You can keep up with it all by checking our Earnings Calendar.
Coming Up: Options Webinar You Won’t Want to Miss
🗓 October 1, at 12 PM EST
Join OptionsPlay for a special webinar, “How to Find High-Probability Reversal Trading Setups.” It’s open to all StockCharts members. Be sure to secure your spot by registering today.
Something fun for the weekend
If you’re in the mood for something lighter, tune into our latest StockCharts Game Show. It’s a fun, interactive way to test your market knowledge and enjoy a few laughs along the way.
Have a fantastic weekend, and for those celebrating, Happy Diwali!
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