Nasdaq closed 1,529.33 for the week ended 16th Jan 09, down 42.26 points or 2.69% from previous week.
S&P500 closed 850.12 for the week ended 16th Jan 09, down 40.23 points or 4.52% from previous week.
Crude oil price finished the week at US$42.27/barrel as compared with previous week of US$40.36/barrel.
US markets were under heavy selling pressure since the start of the week when bad economic data, companies announcing job cut and weak corporate earnings caused worries to the ailing US economy on most investors mind. It was only last Friday that US markets did a reverse of the selling trend when Obama's stimulus package was not blocked by the US Senate and also US banks get more bailout funds.
A recap of last week US economic data/event is as followed.
- 13th Jan 09, International trade reported -US$40.4b, market consensus -US$51.5b and previous value -US$57.2b.
- 14th Jan 09, Retail Sales came in -2.7%, market expecting -1.2% and previous value -1.8%
- 14th Jan 09, Import Prices reported -2.3%, previous value -3.2%. Export Prices reported -4.2%, consensus -5.3%, previous value -6.7%.
- 15th Jan 09, ECB cut interest rate by 50 basis point from 2.5% to 2.0%.
- 15th Jan 09, PPI came in -1.9%, market expecting -2.0%, previous value -2.2%.
- 15th Jan 09, Empire State Mfg Survey reported -22.2, consensus -25.0, previous value -25.8.
- 15th Jan 09, Jobless Claims came in 524K, consensus 500K, previous value 467K.
- 16th Jan 09, CPI reported -0.7%, market expecting -0.9%, previous value -1.7%.
- 16th Jan 09, Industrial Production came in -2.0%, consensus -1.0%, previous value -0.6%.
- 16th Jan 09, Consumer Sentiment reported 61.9, expecting 59.0, previous value 60.1.
- 20th Jan 09, US President Inauguration Day
- 21st Jan 09, Housing Market Index
- 22nd Jan 09, Housing Starts, Jobless Claims
Technically, DJI long term trend is sideway while short-term might see rebound as Stochastic signal has cut up. DI- showing sign of cutting down while DI+ cutting up. DJI did break the support at 8,060 on an intra-day basis on 15th Jan 09 but managed to close above that. DJI has been in range bound between 8,060 to 9,020 for past months. There is no clear sign of breaking out from 9,020 resistance and breaking down at 8,060 support level. Unless these 2 levels are breached else DJI probably continues to range bound.
Technically, Nasdaq long term trend is sideway and short-term wise might see a rebound. Stochastic has flatten at 20% level and looks to cut up in the coming week to signal a rebound. Though DI pair is negatively spaced, DI- and DI+ are showing sign of converging and with ADX around the 20 level, downside is limited for the time being. For past months, Nasdaq has been trading in a range between 1,400 - 1,600. Unless the support and resistance levels are broken else Nasdaq would stay range bound.
Technically, S&P500 long term trend is sideway with short-term wise could be headed for a rebound. Stochastic signal has cut up indicating possible rebound for the coming week. The DI pair still negatively spaced and with ADX around the 20 level, any rebound will be met with resistance around the 915 level. S&P500 has been in range bound for past months between 810 - 915. Unless the support and resistance levels are broken else S&P500 could be trading in this range for some times.
US will be having a short trading week. Investors main focus for the coming week would be Obama's inauguration and corporate earnings. US markets has reversed the down trend last Friday ahead of Obama's inauguration and traditionally US markets always rally for the new president. A possible rebound rally might materialize given that the coming week has little economic data and investors might just ignored any bad corporate earnings to welcome the new president.
