In our Stock market monthly report for October’2012 , let’s review the key developments ,trends and actions of the major U.S market indexes Dow Jones Industrial Average (DJIA), S&P 500 and NASDAQ Composite ( COMP).The indexes started the month in “Rally Under Pressure” mode and ended in “Correction”. The indexes tried to rally early in the month, but end up receding as the days rolled on. NASDADQ led the sell off and cut through several key price level. Number of distribution days also swelled in that Index. Dow Jones and S&P 500 took the hit but at least showed some resilience. Here is our Monthly Review/ Analysis/Statistics.

Dow Jones (DJIA) started the month with price value of 13437.13 and ended at 13096.46. So, it posted -340.67 points or -2.54% losses for the month. So, pretty much wiped all the gains made in the last month. Though, it lost the 50 day moving average price level , but it was holding above the 200 day moving average price level. But, as of this report being published , it lost that level, as well. The support resides around 12,450 and the resistance hovers around 13,000.

Key Statistics:

Source: Yahoo Finance


Dow Jones Heat Map:

S&P 500 (SPX) started the month with the price value of 1440.67 and ended at 1412.16 . So, it posted -28.51 points or -1.98 losses and stalled for the month. But, outperformed than the other two indexes. It lost the 50 day moving average support at the end of the month, but still held above the 200 day moving average price levels. The support resides around 1,360 and the resistance at the 1,400 bench mark price levels.

Key Statistics:

Source: Yahoo Finance


S&P 500 Heat Map:

NASDAQ started the month with a price value of 3116.23 and ended at 2987.95. So, it posted whopping -128.28 points or -4.12% losses for the month and well under performed than the other two indexes. Trading volume came in average levels for the month. It lost the 50 day moving average price support level at the end of the month and lost the 200 moving average support level as of this report being published. The support for the index resides around 2,840 and resistance hovers around 2,980.

Key Statistics:

Source: Yahoo Finance


NASDAQ Heat Map:

The indexes not only wiped out all the gains made in September, but lost some more. The down trend which started on October 10th is started to take hold as of this report being published. Having said that NASDAQ off less than -10% from its 52 week high and the % is even less for Dow Jones and S&P 500. The correction is good for the market and we believe this correction may not last long as like recent corrections. So, let see , How the market behaves in coming days.

How are we doing? Please take few moments to rate this article. Your feedback is very important/valuable to us and it will help us to serve you better.