US indexes trim early losses, close with solid gains

US indexes plunged right after the opening but managed to close the day with solid gains, down anyway for the week. The Dow Jones Industrial Average gained 326 points, and settled at 24,186.59, down for the week over 5%. This Friday, the Nasdaq Composite added 97 points to close at 6,874.49, while the S&P added 38 points, to 2,619.55, both also sharply lower weekly basis. This weekly close clearly suggests that the long due correction has already begun, and this Friday's recovery doesn't guarantee the worst is over for equities.

Within the Dow, only three members closed lower, led by United Technology that lost 1.85%. The best performer, on the other hand, has been NIKE, up 4.80%, followed by American Express that added 3.81%.

 Dow levels to watch

The DJIA established below the 50% retracement of the weekly slump, somehow leading the scale to the downside for the upcoming sessions. In the daily chart, the index also closed far below a now bearish 20 DMA, and below its 100 DMA, although met buying interest near the 200 DMA a couple of times during the week, a line in the sand from now on, as jumpy bulls will get totally discouraged on a break below it. It currently stands at 23,184, roughly 1,000 points below the current level, something totally achievable considering indexes behavior over the last few days.