An attack on Saudi Arabian oil facility knockout out half of the nation's oil output on September 14. Oil prices spiked up and remain high through out the week. On Wednesday, Fed cut interest rate by 0,25 point as expected. Stocks did not react much to these events and closed the week where it started. For the week, S&P 500 index closed at 2992 down 0.51%, Dow Jones Industrial Average lost 1.05% and technology laden NASDAQ composite index decrease 0.72%.
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| Weekly chart of S&P 500 index |
S&P 500 index started the week at 2996, and closed four points below at 2992. It traded between 3021 and 2978 within the trading range of previous week as observed in the weekly chart. It is clear that the index is taking a break to digest its gain after 3 weeks of advancement. The index is still above its 28 week moving average and its momentum is still moving higher. In our opinion, the uptrend is still intact while some minor consolidation may lie ahead.
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