Stock Market Highlights - Week 35
- Fed's Fischer: Too early to decide on Sept hike.
- WTI was $45.22 and brent crude oil $50.02 on 8/28. Signs of reversal?
- Second Estimate: US 2Q15 Gross Domestic Product Expands by 3.7%.
- Buffett's Berkshire takes $4.48 billion stake in Phillips 66.
- Brazil has entered recession as country's economy contracted by 1.9%.
The Dow Jones Industrial Average (DJIA) closed at 16643.01, which was about a 200 point increase versus a week ago
of 16459.75 on Friday, August 21st 2015. We are seeing a small bounce back from the lows of Monday. This volatile price action could suggest further volatile action to come. We'll need to watch to see if the price action can over take the 20DMA or if that becomes resistance. A bounce was likely as we heavily selling that led to price levels that were not seen in almost a year.
If indeed we are in the beginnings of a correction, I'd almost want to short at the 20DMA and then put my stop just above that and a target of the Monday lows. However, we'll continue to check price action and see what happens before making any decisions.
The S&P 500 closed at 1988.87 on Friday, August 28th 2015 versus a week ago of
1970.89 on Friday, August 14th 2015. This was about a 19 point swing back up. We are now eyeing the 2040 level as that had been support prior and is right next to the 20DMA. It is likely that we would see a retest of that level, however we'll have to see where the price action takes us next week.
The Nasdaq (COMPQ) closed at 4828.33 on August 28th, 2015 versus 4706.04 on August 14th, 2015. We are likely to see resistance at 4900 as that was prior support. There are a couple gaps just above current price levels that programs will be targeting to fill.
The last two trading sessions had oil jump up. For the first time in over two months, we finally see that the downtrend has been broken. On the UCO (ProShares Ultra DJ-UBS Crude Oil) you can see that we closed above the 20DMA, however we shall see if this will hold up.
Disclosure: We have a position in UCO and UPRO at the time this article was first written.
The information provided on this site is not advice to buy, sell, hold, trade, or invest in any securities. I am not a financial professional. Do your own research before acting on any information provided on this site.
