By Markus Heitkoetter
It was setting up to be one of the worst week’s of the year. But indecision on Thursday and a rally on Friday helped erase a majority of the losses last week.
The S&P traded as low as 1820.66 on Wednesday, down 4.5%. But a 24 point gain on Friday helped the S&P end on a positive note at 1886.76. In spite of Friday’s strength the S&P ended the week 1% lower with a 19 point loss.
Last week the DOW experienced a similar fate. After being down over 4% mid-week, buyers helped find support. Friday’s 263 point DOW rally helped erase most of the week’s losses and at the end of the week the DOW had lost 1%.
Earnings season, the Ebola scare, and concerns over the global economy will continue to drive the markets this upcoming week. One key technical level to watch is the S&P 200 day moving average. We saw a strong break through the 200 day moving average last Monday, and now traders will see if this level acts as resistance on the way back up.
Google Inc. (GOOGL) lost 2.6% on Friday following disappointing quarterly results.
A Power Crossover Method Sell Signal was identified on 29th Sep 2014. Conservative traders probably opted to take the Average Daily Range Profit Target at $555.77. But more aggressive traders using crossover exits experienced a nice continuation of the downtrend.