Nasdaq closed 1,591.71 for the week ended 6th Feb 09, up 115.29 points or 7.81% from previous week.
S&P500 closed 868.60 for the week ended 6th Feb 09, up 42.72 points or 5.17% from previous week.
Crude oil price finished the week at US$40.04/barrel as compared with previous week of US$41.75/barrel.
US markets started the week relatively week but gaining strength after that to finishing with a gain for the week. Markets has absorbed poor corporates earning and bad economic data pretty well and progress for the Obama's stimulus bill also making favourable progress in the Congress level.
A recap of last week US economic data/event is as followed.
- 2nd Feb 09, Personal Income reported -0.2%, consensus -0.4%, previous value -0.2%. Consumer Spending reported -1.0%, consensus -0.9% and previous value -0.6%.
- 2nd Feb 09, ISM Mfg Index came in 35.6, market expecting 32.6, previous value 32.4.
- 3rd Feb 09, Pending Home Sales reported 87.7, market expecting 82.3, previous value 82.3.
- 4th Feb 09, Non-ISM Mfg Index came in 42.9, consensus 39.0, previous value 40.6.
- 5th Feb 09, BOE cut interest rate by 0.5% to 1.0%. ECB maintained interest rate at 2.0%.
- 5th Feb 09, Jobless Claims reported 626K, market expecting 583K, previous value 588K.
- 5th Feb 09, Nonfarm productivity came in 3.2%, consensus 1.1%, previous value 1.3%. Unit Labor costs came in 1.8%, consensus 2.9%, previous value 2.8%.
- 6th Feb 09, Nonfarm payroll reported -598,000, consensus -524,000, previous value -524,000. Unemployment rate reported 7.6%, consensus 7.5%, previous value 7.2%.
- 11th Feb 09, International Trade
- 12th Feb 09, Retail Sales, Jobless Claims, Business Inventories
- 13th Feb 09, Consumer Sentiment
Technically, DJI long term trend still neutral while short-term wise bias towards upside. Stochastic and RSI are climbing up and DI pair showing sign of converging too. For last week, DJI has been in the range of between 7,950 to 8,350 and if the coming week possible rallying up could show some strength ( with ADX signal moving towards 40 level ), a potential target could be 9,000 level. Downside is if the 7,950 level is broken, might re-test the 7,550 level.
Nasdaq long term still neutral while short-term trend is very strong towards upside. In fact Nasdaq was the strongest markets among the 3 for last week. DI+ just cut up DI-, Stochastic signal rose to 80% level and RSI is heading towards the 70% level. Even the MACD also cut up already. Potentially, Nasdaq could be heading towards the 1,650 level this coming week. The concern is the strength in the rally as the ADX signal still at the 20 level indicating lacking of strength in direction. Downside remained at the support level of 1,440.
S&P500 long term trend still neutral but short-term wise, it is giving a relatively strong signal of upside. DI+ just touched DI- and cutting up while Stochastic and RSI all moving up and stay above 50% level. Even MACD also cut up. S&P500 is currently near the 880 resistance level and if that can break, potentially it should be testing the 930 resistance level. Downside for the moment is the support level at 800.
The main focus for the coming week should be Obama's administration plan and strategy to save the ailing US economy. Timothy Geithner, the Treasury Secretary will be outlining the financial stability plan possibility the setting up of a bad bank to absorb all the bad debts in the begining of the week. Investors will also focus on economic data in particular the Retail Sales data in the later part of the week to determine how US consumers are spending.
