from MyHappyTrading.com by HappyTrading! ™ Sign up for FREE membership!
Happy Super Bowl weekend! Wow, what an exciting Super Bowl game that was!! Back and forth, back and forth, just like the stock market! In the end, Steelers came back, from being down 3 points with about 2 minutes left, and beat the Cardinals with a fanastic touchdown catch by Santonio Holmes. Pittsburgh wins it 27 to 23!
Last weekend (Happy Chinese New Year, belated, by the way!!), I wrote:
"For the new week, the danger of sliding deeper into the new bearish formation is definitely there. In order for the market to avoid that danger, SPX and Nasdaq must come back up above the "support levels" that I spoke of last week, i.e. SPX 850 and Nasdaq 1500, which should now be viewed as "resistance levels". The market has been reacting well to any new, positive, development in the stimulus package from the new Obama administration; so, we'll keep our eyes and ears out for any more news. The financials will likely still be good indicators for the overall market's health."
Well, the market fought SPX 850 and Nasdaq 1500 with all its might, and, was able to finally go above these levels on Wednesday, as hopes rose for the stimulus package. But, as soon as those levels were broken, the market got weak again. On Thursday, the market was pressured by more disappointing economic news. And, on Friday, the market slid back into the negative terroritory for the week, showing disapproval for Obama's proposed stimulus plan. The financials, indeed, were once again the driving force on the market.
For the week, the Dow lost 76.7 points; SPX fell 6.07 points; Nasdaq slid just 0.87 points. Let's see how the market closed on Friday:
SPX
SPX fell 19.26 points to close at 825.88, below the 850 level. The MACD is showing a new bearish crossover.
Nasdaq
Nasdaq lost 31.42 points to close at 1476.42, below the 1500 level. The daily MAs and MACD curved down.
The market closed below the daily MAs and the important support levels (SPX 850; Nasdaq 1500) once again! It is beginning to show signs of further breakdowns...
To read the rest of of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services page. If you are already a subscriber, please click here: Market Forecast 2/2/09.
