On Friday U.S. stock indexes closed at six-week highs, as a rising dollar propelled the price of crude oil to lows not since seen early May, offsetting the latest cloud for financial stocks as Fannie Mae posted large losses.

The Dow Jones Industrial Average was up more than 300 points for a second day this week to close at 11,734.32, up 302.89 points for a weekly gain of 3.6%. The S&P 500 gained 30.27 points to finish at 1,296.33, 2.8% from last week’s close and Nasdaq climbed 58.37 points to 2,414.10, increase of 4.5% in a week.

Looking at the weekly chart, the Dow had closed at 11,734.32 above the 11700 resistance levels. There is a positive divergence present between the price and the MACD Histogram couple with the rebound from the oversold region on Williams %R.

Stocks could move higher next week, as a strengthening dollar and declining commodities prices encourage buyers hoping for a reprieve from inflation. The focus again will be on crude oil as it fell to a level not seen since May 1.

The key economic data reporting next week will be retail sales and consumer sentiment. Consumer price inflation data is expected to report on Thursday.

Retailers reporting earnings next week include ANF, JWN TJS, M, KSS, WMT, and JCP. Other companies reporting are A, AMAT, DE, LINTA, PZE, and TRI.

“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage” - Warren Buffett

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