Courtesy of John Nyaradi.
Bulls Rescue Dow Jones Industrial Average
After a hectic week, the bulls rescue the Dow Jones Industrial Average on Friday.
Charles Dow
The Dow Jones Industrial Average (NYSERCA:DIA) rallied 198 points, 1.26%, on Friday to close out the week on a high note.
The SP500 (NYSEARCA:SPY) jumped 1.1%, the Nasdaq (NYSEARCA:QQQ) added 0.76% and the Russell 2000 (NYSEARCA:IWM) gained 0.79%.
For the week, the SP500 (NYSEARCA:SPY) declined 0.1%, the Dow Jones Industrial Average (NYSEARCA:DIA) dropped 0.4% and the Nasdaq (NYSEARCA:QQQ) posted a fractional gain.
Good news was good on Friday as the rally was largely credited to the better than expected Non Farm Payrolls and unemployment reports which helped stock market bulls break a five day losing run for major U.S.. indexes.
On My Stock Market Radar
In the chart of the Dow Jones Industrial Average (NYSEARCA:DIA) below, we can see how the index is still in a bullish configuration, above both its 50 and 200 day moving averages and with its price in a general uptrend stretching back to October. However, Parabolic SAR, a price based trading system, also known as “stop and reverse,” shows the index to be on a short term “sell” signal in response to recent negative price action and trend.
chart courtesy of StockCharts.com
Last week’s fundamentals were mostly positive, particularly on Friday, as the Non Farms Payrolls report showed that the economy added 203,000 new jobs in November and that overall unemployment fell to 7%.
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