By Markus Heitkoetter
Stocks ended the week with the Bears in control.
After another wild ride on Friday and a 1%+ drop in early trading, a late session rebound helped lift stocks off of session lows. It was a decent late session effort, but it wasn’t enough to keep stocks from ending lower for the day.
The DOW lost 146 points on Friday. With a close of 17749.31 the DOW lost .6% for the week and is now down .4% YTD. The NASDAQ was the big loser for the week, down 1.9%. Although the NASDAQ had the biggest percent loss, the index is still up 2.9% YTD.
In a bit of a disconnect, the RUSSELL 2000 actually ended the week higher! While the S&P, DOW, and NASDAQ had losses of .6% to 1.9%, the RUSSELL was up 1.20% just shy of all-time highs.
If we summarized key events for the week…the bull market turned 6 years old, the DOW and S&P entered into negative territory for the year, and the U.S. dollar hit a 12 year high.
So what now?
The dollar and the Fed will continue to be 2 key driving forces behind market moves. While the dollar’s strength puts pressure on both stocks and commodities, traders ultimately decide on what happens with the dollar. But the Fed situation is a little different since the Fed determines when a rate hike is coming.
This Wednesday could help clarify the Fed’s rate hike intentions with the FOMC Statement at 2pm ET, followed by a FOMC press conference at 2:30PM ET. It’s safe to say this will be the most important item on the economic calendar this week.
International Business Machines (IBM) fueled investor concerns after lowering their earnings estimates last week. After the news, tech stocks like Cisco Systems (CSCO) have mirrored the move lower. CSCO ended the session Friday with a close of $27.94 and a 1.1% loss.
A PowerX Method Sell Signal was identified on 6th Mar 2015. Conservative PowerX Method traders are now considering an ADR Profit Target at $27.13 if the drop continues.