US: Subdued equity performance last week - BBH

Analysts at BBH point out that US stocks were mostly lower last week as the Dow Jones rose nearly 1%, but the S&P 500 slipped marginally, due to the pre-weekend decline, and the NASDAQ eased around 0.3%, with technology a weight in the second half of the week.    

Key Quotes

“The S&P 500 drop on July 27 filled the gap created by the higher opening on July 19.  It proceeded to recovery before consolidating.   As we noted last week, the technical tone is deteriorating.  The Slow Stochastics are rolled over, and the MACDs are poised to turn down.  The RSI is at two-week lows.  It is difficult to speak of meaning resistance at these uncharted waters.  The 2440-2450 area offers the first level of support.  The 20-day moving average comes in just above there, and the S&P 500 has not closed below this average since July 11.”