WALL STREET : Major Indexes Up For The Day, Down For The Week

DJIA Advances Despite Downgrade Threats and Dropping Consumer Confidence

Stocks once again struggled to pick a direction today, as Wall Street weighed encouraging headlines in the equities market against uninspiring domestic data. Among the stocks in focus, a stronger-than-expected earnings showing from Google (GOOG) initially tipped the scales in the bulls' favor, as did buyout buzz surrounding both Clorox (CLX) and Petrohawk Energy (HK). However, the combination of another threat to Uncle Sam's credit rating -- this time courtesy of Standard & Poor's -- stagnation on the debt-ceiling front, and a sharp drop in consumer sentiment kept stocks' upward momentum in check. Nevertheless, the bulls ultimately prevailed, with all three major market indexes settling higher for the session, but lower for the week. The DJIA fell 1.40% w-o-w.

With help from a late-session rebound, the Dow Jones Industrial Average (DJIA – 12,479.73) finished with a gain of 42.6 points, or 0.3%. Exactly half of its 30 components ended higher, with Caterpillar (CAT) pacing the advancers with a 1.7% lead. Meanwhile, Merck (MRK) led the 13 laggards with a 1.1% drop, while both Kraft Foods (KFT) and Wal-Mart Stores (WMT) finished flat. For the week, the blue-chip barometer gave up 1.4%.

Likewise, the S&P 500 Index (SPX – 1,316.14) also reclaimed some ground in the final hour of trading, advancing 7.3 points, or 0.6%, by the close. For the week, the broad-market barometer gave up almost 2.1%, but maintained a perch atop its 10-week moving average. Finally, the Nasdaq Composite (COMP – 2,789.80) fared the best of the three, gaining 27.1 points, or about 1%, to end near a session high. On the other hand, the tech-rich COMP suffered the worst week of its peers, surrendering 2.4%.

TECHNICAL ANALYSIS
Dow Jones Industrial Average


The Dow closed higher due to short covering on Friday as it consolidated some of this week's decline. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 12,339 are needed to confirm that short-term top has been posted. If the Dow renews the rally off June's low, May's high crossing at 12,876 is the next upside target.

First resistance is the 87% retracement level of the May-June decline crossing at 12,752.
Second resistance is May's high crossing at 12,876. 

First support is today's low crossing at 12,406. 

Second support is the 20-day moving average crossing at 12,339.

HAPPY WEEKEND