To The Moon

Index week summary

$S&P 500(.SPX)$  ended a four-day losing streak with gains of 1.4% after rebounding from negative territory shortly after 2 p.m.

$DJIA(.DJI)$ The Dow Jones Industrial Average rose 1.3% to lock in a 1.4% drop on the week. Recall that the Dow had risen for four consecutive weeks....

$NASDAQ(.IXIC)$ The Nasdaq Composite advanced 1.3% but fell 5.6% on the week. The tech index's worst week since Jan. 21.

In short, all the major averages ended the week with losses. The Dow fell 1.4%, ending four weeks of gains. The S&P and Nasdaq fell 3.35% and 5.65% respectively to snap a two-week winning streak.

Events of week:

October's nonfarm payrolls report reportedly left investors divided, fueling some fears the Federal Reserve may continue its bull run since the labor market added 261,000 jobs, well ahead of estimates of 200,000.

Others would have interpreted the results as a sign that the labor market is starting to cool - albeit at a slow pace - as the unemployment rate hit 3.7%...

 However, this would not mean that the Fed will take this report as a signal to abandon its hawkish monetary policy...

Policymakers will want to see several months of data pointing to a slowdown before tempering policy.

Note the good progress of Chinese equities on Friday, driven by hopes of a reopening in China...$SSE Comp(000001.SH)$ 

Next week events:

Next week, the focus will be on the Consumer Price Index report, as well as the US midterm elections.

For the CPI, a drop in inflation could indicate that rate hikes are doing their job and could fuel a potential shift...

Please find below the levels retained for SPX for information purposes (no buy-sell advice).

• Key Levels: 3900 - 4000
• Upper zone: 3850-3950
• Lower zone: 3700-3600

Thanks for reading.

@TigerStars 

@CaptainTiger 

@Do_Trading  on twitter for regular posts