The market started the week off with a loss following the run to fresh highs the prior week and continued pulling back thru Wednesday’s session. Thursday’s rebound still had the bulls down for the week but Tech and the small-caps were showing strength as the zombies played hot potato over the budget bill. It was a short-lived rally as the market fell on Friday and braced for a government shutdown that could start at midnight on Monday if no deal is reached.
The Dow fell 70 points, or 0.5%, to finish at 15,258 on Friday. The blue-chips came into the week needing to hold 15,400-15,350 or faced risk of a drop down to 15,200 and a test of the 100-day MA if they didn’t. The bulls held the first wave of support on Monday’s pullback but the selling pressure continued through Wednesday as the bears cracked the 50-day MA. Thursday’s rebound to resistance (15,400) was right on cue before Friday’s low of 15,211. The 100-day MA held into the close but a break below 15,200 should get 15,000-14,800 in play. A positive Monday and close back above 15,350-15,400 would be bullish for another test to 15,500-15,600. For the week, the Dow was down 193 points, or 1.3%, after starting at 15,451. For the year, the blue-chips have up 2,154 points, or 16.4%
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