The Dow Jones Industrial Average closed on Friday with a loss of 2.55%, losing 622.03 points and closing at 23723.69. On a weekly basis the Dow Jones had a loss of 0.22% while from the start of the year it has a loss of 16.87%.
The S&P 500 closed on Friday with a loss of 2.81% losing 81.72 points and closing at 2830.71 points. For the week the S&P 500 had a loss of 0.21% while it's YTD performance is -12.38%.
The NASDAQ Composite Index closed on Friday with a loss of 3.2% losing 284.6 points and closing at 8604.95. For the week it was down 0.34% while from the first of the year it is only 4.1% down. As you can see the NASDAQ composite has better performance than the other two major indexes.
The current market outlook right now is that we are on an UPTREND. An Uptrend that was confirmed on 2nd of April 2020, the date that we had our follow through day. A follow through day is a day of a new rally between 4th and 7th day with a gain of 1% at least and higher than the previous day. On 28th of April we had a distribution day on both Nasdaq and SP500 . A distribution day is a day when a major Index falls 0.2% or more with higher than the previous day.
So we have 1 distribution day for the Nasdaq and 1 distribution day for the SP500 . A lot of distribution days on a short term means weakness for the rally.
Nasdaq broke the Support (2). Personally I wouldn't be afraid if we have a pullback at our Support (1) and then the markets continue up. If this happens, it's normal. If it breaks the Support (1), more downside will happen. But the Friday's shows that the market will fall a little more.
We remain on an UPTREND right now and we have to see if it will break the Support (1). As long as we are above the Support (1) we are ok.
See you next week for another Weekly Market Update!