Job number is not as bad as expected, and the results of the stress test on the largest 19 US banks removed the uncertainty on the Wall Street. The S&P 500 index closed at 929, up 5.9%, and the Dow Jones Industrial Average increased 4.4% for the week, while the Nasdaq composite index gained 1.2%. Financial and energy sectors are the winners this week.
After falling below its 28 week exponential moving average in June last year, the S&P 500 index finally climbed above the trend line this week. Its momentum(STO[15,1]), at an extremely high level of 94.6, indicates that the rally will keep going on for a while. However, we may see it come back down to test the trend line. We need to see a successfully re-test of the trend line to validate this uptrend.
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