Stock Market Indices Review for Week 36 in 2015

Sep 5, 2015 -

Stock Market Highlights - Week 36

- U.S. job growth slowed in August; unemployment rate near 7-1/2-year low.
- WTI was $46.05 and brent crude oil $49.61 on 9/5. Beginning signs of reversal?
- BlackBerry to buy security firm Good Technology for $425 million.
- Toyota announces $50 million investment into artificial intelligence.
- Apple's $10,000 gold watch fails to impress investors.

The Dow Jones Industrial Average (DJIA) closed at 16102.38, which was about a 540 point decrease versus a week ago of 16643.01 on Friday, August 28th 2015. 

The DJIA has just about gapped up or down everyday last week. Still there were good trading opportunities for day traders throughout the day. We saw two dojis that confirmed short term trend changes one on Thursday of last week and the Friday August 28th. The bounces were sold with conviction. If you went short and held overnight on those two occasions, you would've made out pretty well.

The S&P 500 closed at 1921.22 on Friday, September 4th 2015 versus a week ago of 
1988.87 on Friday, August 28th 2015. This was about a 60 point swing. We are now eyeing three levels of support/resistance as illustrated below. What is not pictured is that we are trading below the 10 day moving average. That looks to be key resistance at the moment. 

The Nasdaq (COMPQ) closed at 4683.92 on September 4th, 2015 versus 4828.33 on August 28th, 2015. Like the DJIA and the SPX, we are seeing the COMPQ present a similar pattern. Though in our opinion, the DJIA and SPX look weaker and quite possibly could present more short term trading opportunities. 

J. C. Penney (JCP) has a number of bullish patterns working for it on the weekly charts. Back in late 2013 and early 2014, we can see an inverse head and shoulders pattern that formed. It was triggered but would be quickly sold and killed off. Then again in late 2014 and early 2015, JCP again tried to develop a small inverse head and shoulders pattern that triggered and we are seeing it unfold now. It's most recent bullish pattern is a break of the trading range. We estimate a target of $10.3 for this pattern.

Disclosure: We have a position in JCP 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.
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