December 28 2013 – U.S. stocks fell slightly Friday, with
the Standard & Poor’s 500 Index trimming a weekly gain, after benchmark
indexes rallied to all-time highs Thursday amid optimism over the economic
recovery. The S&P 500’s retreat Friday halted a four-day rally that was
fueled by improving economic data. A Labor Department report showed that
jobless claims declined by more than forecast, boosting optimism. While the weekly jobless claims reading dropped this week, the four-week moving average rose from 343,800 up to 348,000 due to the 369k and 380k readings seen over the prior two weeks. The current four-week moving average is now 43,000 above the post-recession low of 305,000 seen at the end of September.
The big push higher, though, has left the S&P 500 well above its 50-day moving average. At more than two standard deviations above its 50-day, the S&P is actually the most overbought it has been since mid-May. Investors celebrate 2013's big gains with m…
The big push higher, though, has left the S&P 500 well above its 50-day moving average. At more than two standard deviations above its 50-day, the S&P is actually the most overbought it has been since mid-May. Investors celebrate 2013's big gains with m…