Last weekend, in my Market Forecast, I said,
"For the new week, Monday is going to be a little tricky. After running up for 4 days, the intraday charts are getting toppy. If the market can hang above the 20-day MA (SPX 750; Nasdaq 1400), we might just see the market push this rally higher. We'll need to see if the market can let out some steam without losing altitude. Above the 30-day MA, the resistance levels are at SPX 800 and Nasdaq 1500."
That was pretty much how it went. On Monday, the market opened higher, but, ended lower. It did manage to stay above the 20-day MA. On Tuesday, the market ran higher and, on Wednesday, the market touched the resistance levels that I spoke of: SPX 800 and Nasdaq 1500. However, the market was not able to penetrate those resistance levels just yet, as the market retreated on Thursday. Friday was options expiration day and lots of stocks fluctuated in a tight ranges. But, we finished off the March options in flying colors, actually, mostly GR$$N (see published trades for March)!
Let's see how the market indices look after last week:
SPX
On Friday, SPX lost 15.5 points to close at 768.54. It closed just above its 30-day MA. The MACD flattened a bit.
Nadaq
Nasdaq fell 26.21 points to close at 1457.27. Its 10-day MA went higher. The MACD stayed up also.
The US stock market finally had its first back-to-back weekly win in 6 months! This evening, the Asian markets are solidly higher, perhaps on hopes of the US Treasury's toxic asset plan, which is to be unveiled on Monday. As mentioned earier, both SPX and Nasdaq hit their respective resistances and came back down. But, both managed to stay above the daily MAs. For the new week, it looks like the market intends to...
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