Stocks open lower but close a tad higher in search of direction. Concern about the health of Deutsche Bank weighed on markets while unexpected rise in consumer confidence helped to boost investors' sentiment. For the week S&P 500 index closed at 2168, up 0.17%, Dow Jones Industrial Average gain 0.26% and technology laden NASDAQ composite index increased 0.12%.
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| Weekly chart of S&P 500 index |
S&P 500 index failed to break 2175 resistance level again this week. However, its momentum index has turned upwards so there is a good chance it will break above this resistance in the coming weeks.
On Wednesday, OPEC announced production cut for oil starting in November, the first time since 2008. The announcement provide a 8.5% boost to oil prices for the week as seen ine the weekly chart below. In the weekly chart we also can see a strong resistance level at $50. $WTIC has failed to break about this level several times in the past. This time around, the momentum indicator is climbing up, the index is bouncing off the 28 week moving average so it has a good chance to break above the $50 resistance. If successful, the next level to watch for is the resistance at $60 - $62 which the index tried to hang on for 9 weeks in May and June, 2015.
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| Weekly chart of Light Crude Oil price |
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