Last weekend, in my Market Forecast, I said,
"VIX has sank back below 24, which could signal the intention to rally. We'll have to see if the market can continue to push higher and stay above SPX 1100. If SPX 1100 is cleared, SPX should retest the 1120 level. Miners went up quite a bit last week and may need to take a quick breather. We'll need to see if other sectors can take the leadership while the miners rest."
Once again, things happened as forecasted. On Monday, the market pushed higher and closed above the SPX 1100 level. On Tuesday, SPX 1200 was tested in the morning. As soon as SPX 1200 was touched, profit-takers went into action, and, miners led the decline. On Wednesday, the market slid a little more and started to consolidate. Thursday was volatile as the market hovered around SPX 1100. Friday was another volatile day, although market managed to close just above that 1100 level.
For the week, the Dow was up 41.32 points; SPX slid 1.06 points; Nasdaq fell 14.77 points. Both oil and gold were little changed. This evening, China reported a PMI that is still above 50 (showing manufacturing activity still expanding), although it fell a little from June. At the time of this writing, Asian markets were mostly higher. Let's see where the US market closed on Friday:
SPX
On Friday, SPX added +0.07 points to close at 1101.6, barely above the 1100 level. Its daily MAs moved higher. The MACD stayed flat.
Nasdaq
Nasdaq gained +3.01 points to close at 2254.7. It closed above its daily MAs. The MACD was also flat.
The market basically ended flat last week. Both SPX and Nasdaq managed to close just above the key levels (SPX 1100 and Nasdaq 2250). VIX briefly jumped up above 27, but, closed under 24. For the new week...
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