Last weekend, in my Market Forecast, I said:
"For the new week, with both SPX and DJI ending below major support levels (SPX 1080 and DJI 10,000), the market can see additional selling pressure. Energy sectors still look weak, with oil spill in the Gulf looking to extend into the fall, although the containment cap is capturing some of the leaking oil. Techs are doing better than the broader market. Although Nasdaq also closed under its daily MAs, it is still about 70 points above the recent low. On the downside, if SPX closes below 1040, 1025 is the nearest support."
Indeed, the market slumped lower on Monday. On Tuesday, SPX went down to test that 1040 level, but bounced in the afternoon. On Wednesday, the market rallied higher in the morning, but, lost the gains in the afternoon. On Thursday, better economic data brought the buyers back in, and this time, the market continued higher until the close. Friday was flat for most of the day. A late rally pushed SPX to close above 1090! We positioned ourselves well ahead of the jobs report on Wednesday and finished another week with some very nice trades!
For the week, the Dow was up 279.1 points; SPX added +26.72 points; Nasdaq gained +24.43 points. Gold set a new all-time high on Tuesday, but had a immediate pullback. It closed the week just a bit higher at around $1230/ounce. Oil climbed higher to around $75/barrel. At the time of this writing, Asian market were mostly higher tonight. Let's take a look at the US market:
SPX
On Friday, SPX added +4.76 points to close at 1091.6. It closed above its 20-day MA. Its MACD went higher.
Nasdaq
Nasdaq gained +24.89 points to close at 2243.6, right at its 20-day MA. The MACD was up.
Both SPX and Nasdaq are basically testing the 20-day MA. VIX closed below 30 on Friday. For the new week...
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