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Last weekend, in my Market Forecast, I wrote:
"For the new week, the danger of retesting the lows (SPX 850; Nasdaq 1500) is still there. How the market opens the week will be very important. If the market goes back up above the 20-day MA early in the week, it may just have enough momentum to push above the 30-day MA. It will likely need to do this with 1 or 2 consecutive strong days. But, if the market goes below the support levels (SPX 900; Nasdaq 1600), we will likely see the lows tested."
Well, the market opened on the weak side, and continued to slide until the lows were tested. On Wednesday, the market closed at the recent lows: SPX 850, Nasdaq 1500. On Thursday, the market went lower in the morning, but, was able to get a strong bounce. The recent lows were succesfully test and held. But, on Friday, the market was not strong enough to get a follow-through and fell back down. The market ended down for the week, with the Dow down 446.5 points, SPX losing 57.37 points, Nasdaq falling 130.55 points.
SPX
On Friday, SPX fell 38 points to close at 873.29. It closed below 900. The MACD was flat.
Nasdaq
Nasdaq lost 97.85 points to close at 1516.85. It closed above 1500, the recent low. The MACD was slightly lower.
The market is once again in a very weak spot. It was not able to get a follow-through after Thursday's strong bounce. For the new week, we are again at the options expiration week. Volatility will likely be ...
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