The Dow Jones Industrial Average slipped Friday to cap off a volatile week.
The Dow Jones Industrial Average (ARCA:DIA), slipped 0.3% on Friday but gained 1.5% week over week.
The Dow Jones Industrial Average (ARCA:DIA), slipped 0.3% on Friday but gained 1.5% week over week.
The S&P 500 (ARCA:SPY), added 1.4% for the week in spite of a 0.3% decline in late trading on Friday.
The Nasdaq, PowerShares QQQ (NASDAQ:QQQ), slipped on Friday but gained 0.7% for the week.
The big news of the week, as expected, was the Federal Reserve’s interest rate announcement and Chairwoman Janet Yellen’s press conference which made investors nervous about sooner than expected rate hikes.
On My Stock Market Radar
A quick glance at the chart of the Dow Jones Industrial Average (NYSEARCA:DIA) reveals that the index has rolled back from recent highs and faces technical resistance above current levels.
Momentum continues to decline and the market continues to fail in attempts to break to new highs. Significant resistance lies at the 16,500 level while the 50 day moving average remains flat to down.
Friday was an unusual trading day in that the S&P 500 climbed to an intra-day record but then slipped substantially as the week’s trading came to a close.
Bond yields fell as investors moved to safety and Russian stocks continued their recent decline as the situation in Crimea continued to be unstable.
China’s markets remain weak with the Shanghai Composite, iShares FTSE/Xinhua China 25 Index (ARCA:FXI), down 12% and Hong Kong, iShares MSCI Hong Kong (ARCA:EWH), down 10.8% from recent highs.
Next week brings:
Monday: March Markit Flash PMI
Tuesday: January Case/Shiller home price index, consumer confidence, February new home sales.
Thursday: Weekly jobless claims, GDP estimate
Friday: March University of Michigan Consumer Sentiment.
Bottom line: Markets continue to react to the Federal Reserve’s tapering of its bond buying program and the possibility of interest rates rising earlier than expected. The week ahead will likely see ongoing tensions between Russia, Europe and the United States over the annexation of Crimea and continued interpretation of the Fed’s policies and plans. More volatility for global stock markets can be expected.
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