Weekly Wrap-Up For 7-29-16

July 29, 2016 | dg

Volatile moves in some big name stocks did little to move the overall market as the S&P 500 traded in the tightest range in decades.

Apple jumped higher on heavy volume. It finished the week above $104 and filled the gap down left by the last earnings. Twitter gapped down mid-week on earnings trading below $16 before seeing some selling at the end of the week. FaceBook jumped to a new all-time high, but gave up most of the ground. Amazon saw less of a move today, but also hit a new all-time high of $766. Alphabet (GOOGL) jumped more than 3% and traded briefly over $800.

The S&P 500 ended the week at at 2173.6. That was just less than two points lower on the week. It did put in a new intraday high of 2077.09 on Friday, but the bottom of the range was 2159 as the SPX has seen the lowest range in 55 years by some measures.

The VIX fell to 11.87. Part of that is the weekend effect as the market makers price in the weekend time decay to the SPX options. The VXST, the 9 day Volatility Index closed at 10.01, a very low reading.

John has been focused on the earnings plays this week with his earnings play series.

Tony is bearish on the equity Indexes, but still not short as his levels have not been hit. He points out that the Transportation Index is waving a warning flag as it was lower on the week. He is looking for a correction over the next three to four weeks.

Other traders are picking up on the mixed signals of the market. One thing is for sure, the very low range in equities will not continue for too long. Volatility is mean-reverting and we will see a break of this range in the near future.