Nasdaq closed 1,711.29 for the week ended 17th Oct 08, up 61.78 points or 3.75% from previous week.
S&P500 closed 940.55 for the week ended 17th Oct 08, up 41.33 points or 4.60% from previous week.
Crude oil price finished the week at US$71.80/barrel as compared with previous week of US$79.84/barrel.
A recap of last week economic data/event is as followed.
- 15th Oct 08, Empire State Mfg Survey came in -24.6, previous value of -7.4 and market consensus -10.5.
- 15th Oct 08, PPI reported -0.4%, market expecting -0.4% and previous value -0.9%.
- 15th Oct 08, Retail Sales reported -1.2%, market consensus -0.6% and previous value of -0.3%.
- 16th Oct 08, CPI reported 0.0%, market expecting 0.0% and previous value of -0.1%.
- 16th Oct 08, Jobless Claims came in 461K, market consensus 475K and previous value of 497K.
- 16th Oct 08, Industrial Production reported -2.8% as compared with previous value of -1.1% and market consensus of -0.5%.
- 17th Oct 08, Housing Starts came in 0.817M, market expecting 0.880M and previous value of 0.895M.
- 17th Oct 08, Consumer Sentiment reported 57.5, previous value of 73.1 and market expecting 66.0
Economic data/events for the coming week is as followed
- 20th Oct 08, Leading Indicators
- 23rd Oct 08, Jobless Claims
- 24th Oct 08, Existing Home Sales
Wall Street started the week with a very strong rebound ( up at least 10% within 1 day ) following coordinated actions by European Central Banks to guarantee the deposits of the respective banks and also US Government providing details of how the rescue package would be carried out. However, the positive news soon faded fast and US markets were again send rocket down in the middle of the week as investors now focusing on corporates' earnings and the possibility of recession. Crude oil price also at one point dropped below US$70/barrel and sending a sell off in commodity stocks. With a possible rate cut at the end of the month FOMC meeting, some bargain hunting managed to stabilize the US markets a bit in the later part of the week and helping the indices able to close up for the week.
Technically, mid and long term trend for DJI still down but short-term wise, some bottoming appears to be forming. DI- is cutting down while DI+ is cutting up could signal some short-term rebound is on the way. The ADX signal is at 40 level and if it could maintain at that level coupled with DI+ crosses over DI-, the rebound will be a strong one. MACD signals are flatting at the bottom while MACD histogram is edging towards the zero line. This further signals some reversal on the short-term downtrend is possible on the way. Though RSI has turned up but the Stochastic signals still yet to cut up hence DJI might need another session or two to form a bottom before a rebound. The current immediate support is at the 8,000 level and any rebound will probably capped at the 10,000 level.
The mid and long term trend for Nasdaq is still down but short-term wise, a bottoming and rebound might be on the way. The DI- and DI+ signals starting to show sign of convergence. The ADX signal is well above the 40 level and if it can maintain at that level and coupled with DI+ crosses DI-, a strong rebound could be materialized. MACD signals also showing sign of convergence and with the MACD histogram moving towards the zero line, this indicating a short-term trend reversal could be coming. Though RSI has turned up but Stochastic still unable to cut up. As such, might need another 1 or 2 sessions to form the bottom before any rebound could occur. The immediate support at the moment is around the 1,540 level and a rebound could be capped at the 1,900 - 1,950 level; gap covering.
The trend for S&P500 for short to long terms is pretty much inline with DJI and Nasdaq. Mid to long term still down but short-term wise, bottoming and possible a rebound in sight. DI+ and DI- starting to converge and ADX signal maintained above 40 level. If DI+ manages to cross over DI- and yet ADX signal maintains at such level, a strong rebound could be on the way. MACD signals showing bottoming and possible convergence on the way. MACD histogram moving up towards the zero line. Though RSI turned up but Stochastic has yet to do so hence might need another 1 or 2 more sessions before a rebound could be materialized. The immediate support for the moment is around the 840 level and rebound resistance would be capped around the 1,045 level.
For the coming week, corporate earnings and economic data would be in main focus as investors are looking for any sign of possible recession. With the US Government following European countries in guarantee banks deposit and how the rescue package being utilized being detail out, the financial volatility could be stabilized a bit unless an unexpected bad news surfaced to rock investors confidence again.
