Weekly Wrap-up - The Dow Jones Industrial Average Posts a 597-Point Gain This Week

A strong week comes to a close on a relatively quiet note. After testing both sides of the breakeven line, the Dow Jones Industrial Average (DJIA) closes with a gain of 53 points. The S&P 500 (SPX) and Russell 2000 (RUT) posted similar advances while the Nasdaq Composite (COMP) lagged.

The sector graph shows a slight upside with the AMEX Pharmaceutical Index (DRG), Amex Biotech Index (BTK), and Broker/Dealer Index (XBD) leading. The US Oil Fund (USO) and some of the energy indices were weak.

However, the big news here isn't today's performance. Instead, it is the action for the week. Since last Friday, the Dow has gained 9%, the SPX and COMP have gained 10% and the RUT has gained nearly 12%. This equates to a surge of 597 points for the DJIA and helps to recoup some of large weekly losses discussed last Friday.

I ended the link above talking about the possibility of a bear-market snapback rally. A look to the daily chart below shows the Dow Jones Industrial Average still has room to run until the first layer of resistance near 7500. The next level of congest is at 8000. However, the S&P 500 is currently testing resistance now so that is where I will be focusing my attention on Monday. So, until then, have a great weekend!

Chart Courtesy of Thomson Reuters

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Charts Courtesy of Thomson Reuters

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