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, on Monday morning, we'll get the latest ISM and construction spending data. For both SPX and Nasdaq, the daily MAs of are moving into a new bullish phase. To break higher, SPX will have to break above 1120. For Nasdaq, the resistance is at 2300. On the bottom, the support levels are SPX 1080 and Nasdaq 2200. Here are some notable earnings for the week:
Monday: CSIQ, TIE
Tues: BHI, CBL, CLX, DNDN, LEAP, MA, PCLN,
Wed: MELI, ONXX, PRU, AUY
Thurs: CF, INCY, LIZ
Friday: AIG, SWN
We'll be watching the industrial sectors on Monday for reaction to the ISM and consctruction spending. On Friday, we'll get the latest unemployment report.
Sector Watch
USO (oil)
Although USO was basically flat for the week, it stayed above its daily MAs. The 20-day MA is now moving higher, almost creating a new bullish formation. USO will need to go above $36 to break out.
XME (metals and mining)
XME tested $52, but, did not break through. It did also stay above its daily MAs though. CLF, WLT, and BHP are still among the favorites. FCX held its ground while the sector took a quick pullback. Above $72.5 is a breakout for FCX.
INX2 (internet)
INX2 tested 260, but, did not break through. It pulled back with the broader market. Its daily MAs, however, are already showing a new bullish formation. MACD slid back a little. That 260 is still the level to break. MELI and AOL are reporting on Wednesday.
MOO (agriculture)
MOO pushed higher on Friday as POT reported strong growth. If MOO can break that $42 level, it could be on its way up to test $45 again. POT, CF, and AGU have all been strong. MOS has been lagging.
Good night and HappyTrading! ™ 
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