The S&P 500 ($INX): The bottom line is the Index extended its major (long-term) uptrend to a new high of 6,508.23 during August before closing at 6,460.26, up 120.87 (1.9%) for the month. Theoretical Positions: Long-term investors may have moved to cash given the uncertainty in the S&P 500.
The Dow Jones Industrial Average ($DOWI) posted a bullish outside month during August, including a new high of 45,757.84 before closing at 45,544.88, up 1,413.90 (3.2%) for the month. Theoretical Positions: Long-term investors might’ve sold or protected their position as the DJIA confirmed a major downtrend during March 2025.
The Nasdaq ($NASX) extended its major uptrend to a high of 21,803.75 during August before closing at 21,455.55, up 333.10 (1.6%) for the month. Theoretical Positions: Long-term investors might’ve bought back into high-tech stocks late in April as the Index made its impressive run.
The US 10-year T-note (ZN): I’m going to continue to call the major trend sideways. Theoretical Positions: New longs might’ve been established near the November 2023 close of 109-150. Additional positions could’ve been established near the April 2024 close of 107-140. Another round of long positions could’ve been put in place during August 2024 as the ZN took out its Wave 1 high. Additional longs could be established near the November 2024 close, raising the overall position average to roughly 110-250. Investors could’ve added long positions on a move beyond the previous 4-month high of 111-155 (December) during March 2025. Sell stops would be below the May low of 109-130.
