Extreme Bullishness Lead Overbought Conditions

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as extreme bullishness lead overbought conditions. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow jumps more than 200 points to a record even after a big U.S. jobs report miss

Stocks rose to record levels on Friday, notching another weekly advance, as traders shook off a disappointing U.S. jobs report. The Dow Jones Industrial Average closed higher by 248.74 points, or 0.8%, at 30,218.26. The S&P 500 gained 0.9% to end the day at 3,699.12, and the Nasdaq Composite advanced 0.7% to 12,464.23.

The S&P 500 (SPY) added +0.88% today. Sector advancers led decliners 10 to 1 as shown below in the sector graph. Gains ranged from 5.45% to less than 1%. Utilities (XLU) lost -1.00%.

The Dow Jones index rose +210 points (+0.70%) to close at 30,180. The Nasdaq climbed +87 points (+0.70%) to settle at 12,464.

Extreme Bullishness Lead Overbought Conditions

Stocks gained ground on Friday despite a disappointing jobs report.

Friday’s jump led major averages to for their fourth weekly gain in five weeks. Week to date, the Dow rose 1%. The S&P 500 gained 1.7% over that time period. The Nasdaq Composite rallied 2.2% this week.

The U.S. economy added 245,000 jobs in November. That’s well below a Dow Jones consensus estimate of 440,000. The unemployment rate, however, matched expectations by falling to 6.7% from 6.9%.

However, some traders saw the weaker-than-expected number as a positive because it could pressure lawmakers to mover forward with additional fiscal stimulus.

President-elect Joe Biden also called for more stimulus, noting Friday’s report foreshadows a “dark winter.” Biden later said it “would be better if they had the $1,200,” and that he understands “that may still be in play.”

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

Download our new Handy ETF Guide

Subscribe to get our free weekly newsletter by email.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

12/4/20

S&P 500 Sector Graph

Extreme Bullishness Lead Overbought Conditions

S&P 500 (SPY)

Extreme Bullishness Lead Overbought Conditions

Communication Services (XLC)

Extreme Bullishness Lead Overbought Conditions

Consumer Discretionary (XLY)

Extreme Bullishness Lead Overbought Conditions

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

Consumer Staples (XLP)

Extreme Bullishness Lead Overbought Conditions

Energy (XLE)

Extreme Bullishness Lead Overbought Conditions

Financials (XLF)

Extreme Bullishness Lead Overbought Conditions

Real Estate (XLRE)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Episode 3: 6 Investing Rules for Individual Investors – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 3: 6 Investing Rules for Individual Investors In this episode I discuss 6 investing rules for the individual investor that is in charge of their own retirement account.

Technology (XLK)

Extreme Bullishness Lead Overbought Conditions

Utilities (XLU)

S&P 500 Sector Heat Map

 

Leave a Reply

Your email address will not be published. Required fields are marked *