Last weekend, in my Market Forecast, I forecasted,
"For the new week, we'll look to see if we can continue to get improved economic data, especially the consumer confidence and Chicago PMI on Tuesday to perhaps set the tone. On Friday, we'll get the latest payroll numbers and unemployment rate. VIX actually closed lower last week and closed below 25. On the other hand, both SPX and Nasdaq are showing newly developed bearish formation. If the indices can close above the 10-day MA, the market could gain some upwards momentum. SPX 1110 and Nasdaq 2250 remain the levels above which the market can turn bullish. Once again, the market will need to see strength early in the week to continue higher. If the market does not go above the 10-day MA early in the week, the downside danger should increase. Industrials will be very important. So, we'll be watching the miners closely."
As suspected, the market did turned higher. On Monday, the market slid lower in the afternoon. On Tuesday, the market was mixed, but, showed strength near the close. Overnight, China reported better-than-expected PMI number. On Wednesday, the market jumped on solid manufacturing data, and closed above the 10-day MA. Once above the 10-day MA, the market kept on going. The market focused on positive news on both Thursday and Friday and closed basically at the above-mentioned levels where the market can turn bullish (SPX 1110 and Nasdaq 2250). We also had a nice week, locking in profits on trades such as FSLR, AAPL, and AKAM. Miners were the leading sector that pushed the market higher.
For the week, the Dow was up +297.28 points; SPX added +39.92 points; Nasdaq gained +80.12 points. Gold closed slightly higher, near the $1250 mark. Oil was slightly lower, still under $75/barrel. Asian markets jumped on Monday, following the strong performance from the US. Tonight, at the time of this writing, Asian markets were mixed. Here's how the US market closed last week:
SPX
SPX added +30.96 points to close at 1080.29. It closed just under the 20-day MA. MACD turned up.
Nasdaq
Nasdaq gained +33.74 points to close at 2233.75, also above its daily MAs.
Both SPX and Nasdaq closed above their respective daily MAs, although Nasdaq is still under that 2250 level. SPX, however, managed to closed just above 1100. For the new week...
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