By Markus Heitkoetter
Stocks and commodities spent most of Friday in the red, ending the week on a down note. The S&P closed near lows of the week, losing 12 points on Friday. The S&P was down 22 points total for the week, ending at 1985.54.
The DOW had a similar fate, down 61 points on Friday and a total of 150 points for the week. The DOW ended the week at 16,987.51.
We’re not seeing huge volatile selloffs. But traders start to pay attention to above average volume down days like we had on Friday. Especially when the major indices start to pull away from key numbers like 2000 in the S&P and 17000 in the Dow.
In the upcoming week traders will be focused on the Fed. On Wednesday the Fed will announce its latest monetary policy. They already said that they intends to keep rates low for a “considerable time” until the job market improves and as long as inflation remains in check. However, if the Fed removes these two words “considerable time” from its statement this week, the markets could sell off and it could get ugly.
So keep on eye on the market’s reaction to the Fed statement on Wednesday!
Commodities had a tough time this past week. Gold(GC) lost more than 3%, ending the week at $1229. Gold has been moving lower since a Power Crossover Downtrend began on 20th Aug 2014.
The $1200 an ounce level has acted as key support going back to 2010. With the$1200 mark lingering below, there isn’t a whole lot keeping Gold from edging lower. Are buyers ready to step in at $1200 this time around? And will we see $1200 this week?