Stocks End Week of Woes on Upnote: Is a Bottom in Sight?

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"We had a nice bounce back after Thursday's bloodbath," noted Schaeffer's Senior Technical Strategist Ryan Detrick. "Although there wasn't any big news on the day, the fact that it was a Friday and we didn't see any big selling ahead of the weekend has to be considered a victory." But try as it may, the Dow Jones Industrial Average (DJI) stayed below breakeven for the week.

Keep reading to see what else was on our radar today:

  • Price is truth : Undeniable signs that the pharmaceutical sector is winning .
  • Did Goldman Sachs call a bottom for the SPX ?
  • What is standing in the way of additional upside for small caps ?
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,640.78) reclaimed a portion of the previous session's deficit, climbing 67.2 points, or 0.5%, by the closing bell. All but three of the 30 blue chips ended with wins, as Microsoft ( MSFT ) and Merck ( MRK ) led the outperforming majority with gains of 1.9% each. Wal-Mart ( WMT ) settled with a 0.6% drop, while Caterpillar ( CAT ) edged fractionally lower. Exxon Mobil ( XOM ) remained unchanged. For the week, the Dow dipped nearly 1%.

The S&P 500 Index (SPX - 1,335.02) finished in the black today, moving 9.5 points, or 0.7%, higher. With the best performance of its fellow benchmarks, the Nasdaq Composite (COMP - 2,892.42) jumped 33.3 points, or 1.2%. Over the past five sessions, the SPX surrendered 0.6%, while the COMP finished with a 0.7% rise.

The CBOE Market Volatility Index (VIX - 18.11) tripped back below 20 today, and tallied a 9.8% decline by the time the dust settled. The market's fear gauge lopped off 14.2% on the week -- its lowest weekly close since late April.

Today's highlight : "I'll be filling in writing our Monday Morning Outlook this coming week, so be on the lookout for it this weekend," said Detrick. "I discuss why we still think we're making a major bottom, and why higher prices could be in the cards over the coming months."

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

Oil futures reversed their recent bout of weakness today, but were unable to erase all of the damage done throughout the week. The possibility of a strong storm in the Gulf of Mexico contributed to the commodity's rise, as the potential for production interruption fueled supply concerns. Crude for August delivery added $1.56, or 2%, to close at $79.76 a barrel. For the week, though, black gold slipped 5.1%.

Gold futures also finished in positive territory today, finding some safe-haven support after Moody's downgraded several global financial institutions . By the close, August-dated gold inched up $1.40, or 0.1%, to settle at $1,566.90 an ounce. The precious metal peeled back 3.8% for the week, nearing breakeven for the year.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,640.78) - support at 11,500; resistance at 14,000

  • S&P 500 Index (SPX - 1,335.02) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,892.42) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

For today's notable annual highs and lows, click here .

SCHAEFFER'S MARKET POSTURE

At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Options

Referenced Stocks: CAT , MRK , MSFT , WMT , XOM

Schaeffer's Investment Research

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