Hello everybody! Welcome to another episode of Weekly Market Update. Let's get started with the performance of the major indexes of Wall Street for the week ending on 17th of April 2020.
The Dow Jones Industrial Average closed on Friday with a gain of 2.99%, adding 704.8 points and closing at 24,242.5. On a weekly basis the Dow Jones had a gain of 2,21% while from the start of the year it has a loss of 15,05%.
The S&P 500 closed on Friday with a gain of 2,68% adding 75 points and closing at 2874.57 points. For the week the S&P 500 had a gain of 3,04% while it's YTD performance is -11,03%.
The NASDAQ Composite Index closed on Friday with a gain of 1.38% adding 117.8 points and closing at 8650.1. For the week it was up 6,09% while from the first of the year it is only 3,59% down. As you can see the NASDAQ composite has better performance than the other two major indexes.
The current market outlook right now is that we are on an UPTREND. An Uptrend that was confirmed on 2nd of April 2020, the date that we had our follow through day. A follow through day is a day of a new rally between 4th and 7th day with a gain of 1% at least and volume higher than the previous day. On 7th of April we had a distribution day which has been deleted after the huge gain of 4% on 14th of April. A distribution day is a day when a major Index falls 0.2% or more with volume higher than the previous day.
So we have 0 distributions days, which is a positive sign for the market. A lot of distributions days on a short term means weakness for the rally.
Personally I wouldn't be afraid if we have a pullback at our Trendline Support and then the markets continue up. As you can see on the graph we are on 61.8% Fibonacci Level, we crossed the 50 moving average and on Friday we saw a pinbar. So there is a 65-70% probability for the markets to have a pull back to the Trendline support. We have to see also the earning season. If the results are not good, the pull back has more probability to happen.
But whatever happens, we are on an UPTREND right now.
See you next week for another Weekly Market Update!
The Dow Jones Industrial Average closed on Friday with a gain of 2.99%, adding 704.8 points and closing at 24,242.5. On a weekly basis the Dow Jones had a gain of 2,21% while from the start of the year it has a loss of 15,05%.
The S&P 500 closed on Friday with a gain of 2,68% adding 75 points and closing at 2874.57 points. For the week the S&P 500 had a gain of 3,04% while it's YTD performance is -11,03%.
The NASDAQ Composite Index closed on Friday with a gain of 1.38% adding 117.8 points and closing at 8650.1. For the week it was up 6,09% while from the first of the year it is only 3,59% down. As you can see the NASDAQ composite has better performance than the other two major indexes.
The current market outlook right now is that we are on an UPTREND. An Uptrend that was confirmed on 2nd of April 2020, the date that we had our follow through day. A follow through day is a day of a new rally between 4th and 7th day with a gain of 1% at least and volume higher than the previous day. On 7th of April we had a distribution day which has been deleted after the huge gain of 4% on 14th of April. A distribution day is a day when a major Index falls 0.2% or more with volume higher than the previous day.
So we have 0 distributions days, which is a positive sign for the market. A lot of distributions days on a short term means weakness for the rally.
Personally I wouldn't be afraid if we have a pullback at our Trendline Support and then the markets continue up. As you can see on the graph we are on 61.8% Fibonacci Level, we crossed the 50 moving average and on Friday we saw a pinbar. So there is a 65-70% probability for the markets to have a pull back to the Trendline support. We have to see also the earning season. If the results are not good, the pull back has more probability to happen.
But whatever happens, we are on an UPTREND right now.
See you next week for another Weekly Market Update!