Stock Market Highlights - Week 17
- Nasdaq composite index beat its record of 5,048.62 set on March 10, 2000
- AMZN & MSFT shares rose to $445.10 & $47.87, respectively due to cloud business profits
- Greece and EU ministers fail to reach deal in unlocking 7.2B euros to pay off IMF debt.
- Brazil's Ibovespa stock benchmark extends a rally from a Jan. 30 market low to 21%.
The Dow Jones Industrial Average closed at 18080.14 on Friday, April 24th 2015, which is up 1.42% from last Friday the 17th. The triangle trading pattern has not yet been broke, however is itching to break upwards. Volume has essentially been a non-factor in our analysis.
Price action continues to make higher lows at the end of March, beginning of April, and once again tested the 17800 level last Friday. This was followed up with a bullish engulfing candle on the 20th. While there is still risk to the downside, the probabilities suggest there will be further upside. You'll see this when we look at the NASDAQ and SPX charts later.
The stochastic indicators at the bottom of the chart actually worked off some of that overbought territory. There is still room for the stochastic indicators to run above 80, which means we should be looking at breaking out of the channel. Again if it breaks below and fails, we have numerous support levels to watch for including the 17800 level and then the 17700-17600 levels.
The S&P 500 closed at 2117.69 on Friday, April 24th, 2015. The S&P continues to show relative strength compared to the DJIA with an increase of 1.75% compared to the prior week. The triangle pattern we saw forming in the past two months has now been broken. A break from the triangle and continued upward price action would suggest higher prices to come.
The 50 day moving averages has held relatively well and continue to be support for this index. Watch next week for a break above the green line we've drawn below. Evidently more sideways action would be good for the overbought indicators, however don't be surprised if we trade above overbought conditions as the market takes off again.
The Nasdaq closed at 5092.08 on Friday, April 24th 2015. This was an increase of 1.92% from last Friday the 17th. The Nasdaq has broken out to new all-time highs; busting through the high established in 2000 during the dot-com boom. We would like to see continued upward action and this is likely to happen as nobody is trading a loss now. Still as always, we watch to see if the price falls back into the trading range. Should it do so, we can almost certainly expect a retest of the bottom range.
Box, Inc. (BOX), a provider of cloud-based computing, closed at $17.75 on Friday, April 24th 2015. It recently IPOed in late January. Since its descent from a high of over $24 on opening day, it has since traded anywhere from $21 to as low as $17 per share. If you are bullish you'd want to enter in when the price sustains above the 50 day moving average. For bears, you are looking at any break below $17 and sustained follow through to be an indicator of lower prices.
Labels: Weekly Market Reviews