Better than expected company earnings from Google and Amazon boosted investor sentiment but the weaker than expected second quarter GDP put a damper on the rally. Stocks ended up mixed for the week. Small cap and technology stocks leading the way while large cap stocks were flat. For the week S&P 500 index closed at 2173, down 0.07%, Dow Jones Industrial Average lost 0.75% while technology laden NASDAQ composite index increased 1.22%.
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| Weekly chart of S&P 500 index |
Momentum indicator is at an extreme overbought condition in the weekly chart of S&P 500 index. After making the new high, the index failed to push higher and ended where it was at the beginning of the week. It is likely that the index will enter the consolidation phase in the next few weeks. Weekly chart below shows that the momentum indicator of Nasdaq composite index is also at the extreme overbought condition, but the index still climbed higher this week. It looks like Nasdaq composite index will have a few more weeks to go than S&P 500 index before entering consolidation phase.
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| Weekly chart of Nasdaq Composite index |
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