Market Recap: U.S. stock indices rise today, but close with weekly losses

The major U.S. stock indices ended the day with gains of 1% or more for all three major benchmarks, but they closed lower for the week. Here’s a detailed snapshot:

Closing Levels (Daily Gains):

• Dow Jones Industrial Average: rose 498.82 points (+1.18%) to close at 42,841.06.

• S&P 500 Index: rose 63.79 points (+1.09%) to close at 5,930.87.

• NASDAQ Composite: rose 199.83 points (+1.03%) to close at 19,572.60.

• Russell 2000 (Small-Cap Index): rose 20.86 points (+0.94%) to close at 2,242.36.

Weekly Performance:

• Dow Jones Industrial Average: fell -2.25%.

• S&P 500 Index: fell -1.90%.

• NASDAQ Composite: fell -1.78%.

• Russell 2000 Index: fell -4.45%.

Technical Insights for the NASDAQ Composite:
On the hourly chart, the NASDAQ index tumbled below its 200-hour moving average (19,428.78) and an upward-sloping trendline during the trading day. However, it failed to sustain the downward momentum and rebounded to close between its 200-hour moving average and its 100-hour moving average (19,803.75).

Outlook for Next Week:

• Trading above the 100-hour moving average would indicate a bullish short-term bias.

• Trading below the 200-hour moving average would signal a bearish short-term bias.

The interaction with these key moving averages will be critical in determining the direction of the NASDAQ Composite in the coming days.

Technical Insights for the S&P Composite:
On the hourly chart, the S&P index fell below its 100 and 200 hour moving averages and 6040.97 and 6001.31. That tilted the bias more to the downside. The low price for the week did extend below a swing area between 5853.00 and 5878.47, but the price quickly snapped back in trading today. The selllers had their shot and they failed.

Going into next week, the target resistance on the topside would be the moving averages. The swing area on the downside will be supported

Outlook for Next Week:

• Trading above the 200- hour MA and 100-hour moving average (green and blue lines) would indicate a bullish short-term bias.

• Trading swing area support would signal a bearish short-term bias.

The interaction with these key moving averages will be critical in determining the direction of the NASDAQ Composite in the coming days.

This article was written by Greg Michalowski at www.forexlive.com.