Greece' debt crisis dominated the sentiment on Wall street even though favorable data showed US economy expanded in May with strong retail sales and consumer sentiment. After two down days, Dow Jones Industrial Average jumped more than 230 points on Wednesday and rose modestly on Thursday. Profit taking and concern on global economy pulled down the stock market Friday. For the week S&P 500 index closed at 2094, up 0.06%, Dow Jones Industrial Average gained 0.28% while Nasdaq composite index ended up almost flat by decreasing only 0.34%.
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| Weekly chart of S&P 500 index |
Weekly chart of S&P 500 index shows that the momentum of the index is heading downwards since mid May while the index is flat trading around 2100 since February and magically stays above its 28 week moving average. It looks like the index is in a flat correction mode where the index stays in a horizontal trading channel while the momentum indicator falls to over sold condition. As discussed last week, we expect the STO indicator to fall below 50 and the trend less pattern to last for another few weeks.
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