Weekly Wrap-up - The Dow Jones Industrial Average Rallies Back to Challenge Resistance

Tags: SPX
23 Aug 4:32am
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The week ends on a high note as the Dow Jones Industrial Average (DJIA) posts a gain of nearly 200 points. This allowed the blue chip barometer to essentially close the week flat. The S&P 500 (SPX) was also relatively unchanged on the week. The Nasdaq Composite (COMP) and Russell 2000 (RUT) posted big gains today but still posted losses 1.5% and 2.0% when compared to last Friday.

A look to today's sector action shows the same "commodity-corner-line-in-the-sand" theme that has been in place recently. The US Oil Fund (USO) was hammered and most oil-related stocks were down. The PowerShares Clean Energy ETF (PBW) bucked the selling, however, and posted a gain. The Amex Gold Bugs Index (HUI) lost nearly 3% today but still finished the week with a gain of 8%. Financials led the action.


Chart Courtesy of Thomson Financial

Index Index Value Point Change Percent Change
S&P 500 (SPX) 1292.2 14.5 points 1.13 percent
Dow Jones Industrial Average (DJIA) 11628.1 198 points 1.73 percent
Nasdaq Composite (COMP) 2414.7 34.3 points 1.44 percent
Russell 2000 (RUT) 737.6 12.4 points 1.70 percent
CBOE Market Volatility Index (VIX) 18.81 -1.01 points -5.1 percent

As far as my overall thoughts go, they are still (of course) focused on the daily charts of the S&P 500 (SPX) and Dow Jones Industrial Average (DJIA). With today's pop, the SPX is bouncing off support while the DJIA is now back in a position to re-challenge resistance. I would consider a Dow breakout to be an encouraging sign for the market so that is what I will be watching come Monday. So, until then...have a great weekend!


Chart Courtesy of Thomson Financial


Chart Courtesy of Thomson Financial


Copyright Schaeffer's Investment Research http://www.schaeffersresearch.com

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