After eight week of gain for the S&P500 index, investor start getting FED tightening anxiety. Good economic news during the week became bad news, and stock prices went down for 5 days in a row. Finally, the oversold condition created a buying opportunity and stocks rebounded Friday wiped out all the loss. S&P 500 index closed at 1805, down 0.04%, Dow Jones Industrial Average lost 0.41%, while Nasdaq composite increased 0.06% for the week.
Technically, we can see the difference in intermediate and short term trend in weekly can daily chart of S&P 500 index. In the weekly chart, the momentum indicator is still at high level and price is still trending upward along the top of the trending channel. The chart pattern is similar to what it experienced in January-February this year. On the other hand, the momentum indicator in the daily chart is heading downward and the price is trending side way with downward bias. With that backdrop, we may see another one or two weeks of flat price movement in the weekly chart of S&P500 index before the index took off to anther level as what it did in March after the short term consolidation was completed.
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| Weekly chart of S&P500 index |
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| Daily chart of S&P500 index |
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