The Dow snapped its seven-day winning streak on Friday as traders fretted over the specter of gasoline prices cutting into consumer sentiment. However, the blue-chip average posted its best weekly rally since December 2011.
The Dow Jones Industrial Average, as quoted by Foxbusiness.com, slipped 20.1 points, or 0.15%, to 13233, the S&P 500 gained 1.6 points, or 0.11%, to 1404 and the Nasdaq Composite fell 1.1 points, or 0.04%, to 3055.
The Dow and broader S&P 500 both jumped 2.4% this week, while the Nasdaq tacked on 2.4%. Indeed, the S&P is at its highest level since May 2008. Conversely, the CBOE's VIX, which is sometimes referred to as Wall Street's fear gauge, ended the week at its lowest level since 2007.
The advance in equities has been swift, with the major market averages notching multi-year highs on a regular basis, which has some analysts questioning if a pullback is on the horizon.
"The rally in global stocks and the selloff in [U.S. Treasuries] suggest to some that the markets are feeling that recovery may be finally on its way," Jose Wynne, an analyst at Barclays Capital wrote in a note to clients on Friday.
"But a deeper look into global market indicators suggests that, in fact, the market is still going through a relief rally more than chasing a new trend on global growth."
Jakarta Composite Index (JCI) may move in mixed with a limited uptrend. We see an opportunity of trading for the second and the third line stocks. The support and resistance level is within 4,009-4,045. Top picks: WIKA, SSIA, PTPP, BMTR, and ITMG.
Today, the JCI may move in mixed within the range of 3,988-4,054. On Friday last week, the index retreated 0.28% to 4,028.54 with total transactions of Rp4.89 trillion.
Technically, the index may potentially rise within the range of 4,010-4,065. Several stocks to watch: JSMR, HEXA, PGAS, and CPIN.
Disclosure: No position at the stock mentioned above.
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