The Standard and Poors 500 index (SPX) closed today at 4457, up 6 points on the day or +0.1%. SPX opened the week at 4510 for a weekly loss of 1.2%. Trading volume remains below average, suggesting a relative lack of enthusiasm from the bulls or the bears.

VIX, the volatility index for the S&P 500 options, played see-saw this week, opening the week at 14.1%, increasing to 15.7% mid-week and closing today at 13.8%.

I track the Russell 2000 index with the IWM ETF, which closed today at 183.9, down 0.4 points, but posted a 3.1% loss for the week. IWM declined every day this week and even gapped open lower on Thursday. I follow the Russell 2000 because these high beta stocks tend to show the overall market’s trend. These are the stocks the institutions tend to sell when they sense danger.

The NASDAQ Composite index closed today at 13,762, up 13 points, but lost 1.7% for the week. NASDAQ solidly broke down through its 50 dma on Thursday. NASDAQ’s trading volume remains below average, declining steadily all week.

The market posted strong gains for May through the end of July, and then gave back about half of those gains through mid-August, when it tried to recover and made it to a high last Friday before declining all of this shortened holiday week.
 
This week's trading wasn’t a pretty picture. Today’s trading on both the S&P 500 index and the NASDAQ index included a strong bullish run to a higher price that the bulls couldn’t hold, with the bears coming in to sell, and closing near the opening price for the day.



The S&P 500 lost 1.2% this week, NASDAQ lost 1.7% and the Russell 2000 lost 3.1%. All of these indices have now broken through their 50 day moving averages.
 
I remain largely in cash. I will feel better when we get September and October behind us.