Political turmoil shook Wall Street's confidence about economy policy reform from Trump administration mid-week. Major indices fell sharply on Wednesday with Dow Jones Industrial Average dropped more than 300 points in one day. However, markets recovered quickly Thursday and Friday and DJIA gained back two third of its loss. For the week, S&P 500 index closed at 2381, down 0.38%, Dow Jones Industrial Average lost 0.44% and NASDAQ composite index decreased 0.61%.
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| Weekly chart of S&P 500 index |
Again, S&P 500 index failed to closed above 2400 resistance in the weekly chart. The index broke above 2400 on Tuesday but fell off sharply right away Wednesday and closed below 2400 for the week. Even though the index still managed to stay above 28 week moving average, the failure to break the resistance and the increase in volatility do not bode well for the up-trend. A correction phase may be upon us, if the large intra-week swing continues.
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