Another week with negative sentiment for Dow and S&P

The weekly charts for the Dow Jones Industrial Average (INDU) and S&P 500 remain negative. The Nasdaq 100 remains overbought. Investors should continue to read the weekly charts, especially in a week when earnings are expected from momentum stocks Apple (AAPL) , Alibaba (BABA) , Amazon.com (AMZN) and Alphabet (GOOGL) .

The weekly charts show a red line through the price bars, which is the key weekly moving average (a five-week modified moving average). The green line is the 200-week simple moving average. The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicates overbought and readings below 20.00 indicates oversold. A negative weekly chart shows the market below its key weekly moving average with weekly momentum declining below 80.00 in a trend towards 20.00.

The stochastic readings can help investors judge when to reduce long positions. The 12x3x3 weekly slow stochastic is based upon the last 12 weeks of data - Each week's high, low and last prices. This measure of momentum rises as new weekly highs continue and with the last prices closer to the highs. When this pattern changes and weekly last prices are closer to the lows, the stochastic reading will begin to decline providing an early warning to reduce holdings.

Here's the weekly chart for the SPDR Dow Jones Industrial Average ETF (DIA) , aka Diamonds.

Diamonds trades around $181, up 4.2% year to date. The weekly chart for Diamonds is negative with the exchange-traded fund below its key weekly moving average of $182.10 and well above its 200-week simple moving average of $166.78. The weekly momentum reading fell to 42.72 last week down from 50.43 on Oct. 14.Investors looking to buy Diamonds should do so on weakness to $180.16, which is a key level on technical charts for this week. Investors looking to reduce holdings should do so on strength to $183.08, which remains in play until the end of 2016.

СHere's the weekly chart for SPDR S&P 500 ETF Trust (SPY) , aka Spiders.

Spiders trades close to $214, up 5% year to date. The weekly chart for Spiders is negative with the ETF below its key weekly moving average of $214.78 and well above its 200-week simple moving average of $191.80. The weekly momentum reading fell to 49.42 down from 58.59 on Oct. 14. Investors looking to buy Spiders should consider buying weakness to $212.37, which is a key level on technical charts for this week. investors looking to reduce holdings should consider selling strength to $216.55, which remains in play until the end on 2016.