The major U.S. stock indices enjoyed a strong finish to the day, with each of the three major benchmarks climbing over 1%. However, despite this daily rally, they still ended the week on a lower note. Let’s take a closer look at the details:
Closing Numbers (Daily Gains):
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Dow Jones Industrial Average surged 498.82 points, gaining 1.18%, to wrap up the day at 42,841.06.
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S&P 500 Index added 63.79 points, with a 1.09% increase, closing at 5,930.87.
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NASDAQ Composite climbed 199.83 points, marking a 1.03% rise, and ended the day at 19,572.60.
- Russell 2000 (Small-Cap Index) increased by 20.86 points, rising 0.94% to finish at 2,242.36.
Weekly Performance:
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The Dow Jones Industrial Average fell by 2.25%.
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The S&P 500 Index experienced a drop of 1.90%.
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The NASDAQ Composite slipped by 1.78%.
- The Russell 2000 Index had a steeper decline, dropping 4.45%.
Technical Insights for the NASDAQ Composite:
Throughout the trading day, the NASDAQ index experienced a dip below its 200-hour moving average, positioned at 19,428.78, and breached an upward trendline. However, it couldn’t hold onto this downward push, instead rebounding to sit comfortably between its 200-hour and 100-hour moving averages, the latter being at 19,803.75.
Next Week’s Outlook:
How the NASDAQ navigates these significant moving averages will be crucial in predicting its path in the days ahead.
Technical Insights for the S&P Composite:
Analyzing the hourly chart, the S&P index slipped beneath both its 100-hour and 200-hour moving averages, which are at 6,040.97 and 6,001.31 respectively. This move hinted at a bearish tone. Despite dipping below a support zone between 5,853.00 and 5,878.47, the index made a robust recovery. This marks a failed attempt by sellers to push prices lower for now.
Looking Forward to Next Week:
The focal point will be whether the S&P 500 can sustain trading above its 100-hour and 200-hour moving averages, which would suggest a short-term bullish outlook. Alternatively, slipping back to the swing area might indicate a shift to a bearish perspective. The interplay with these key levels will be a driving factor for the NASDAQ’s direction in the upcoming days.
