Last weekend, in my Market Forecast, we discussed,
"For the new week, lots of earnings are coming in. We'll have to see
how WFC and HAL earnings are on Monday morning, but, the market may
need to take a quick pause to start the week... SPX 1250 may see some resistance, while Nasdaq has resistance at
2750. If the market does a quick pull back, we could see SPX test 1200. A lot of banks are reporting next week, so, financials are going to be
crucial. Of course, heavyweights such as IBM, AAPL, INTC, and EBAY will
dominate the tech stocks."
Indeed, the market came down quickly on Monday to test SPX 1200. However, it also bounced off quickly on Tuesday, when financials rallied. After the market, AAPL reported a rare miss on its earnings, and the market slipped again on Wednesday. SPX 1200 was tested again on Thursday morning, but, that support held up again, although the quick falls did give us a chance to catch some fast winners on the downside. On Friday, the market pushed higher with energies and financials in the lead.
For the week, the Dow was up +164.3 points; SPX added +13.67 points; Nasdaq slipped 30.39 points. Both oil and gold were slightly lower for the week. At the time of this writing, Asian markets were mostly higher. Here's how the US market closed on Friday:
SPX
On Friday, SPX added +22.86 points to close at 1238.25. Its daily MAs and MACD went up.
Nasdaq
Nasdaq gained +38.84 points to close at 2637.46. Its daily MAs and MACd also went higher.
Both SPX and Nasdaq managed to stay above their respective daily MAs. For the new week, earnings will continue to pour in:
Monday: (AM) CAT, RSH; (PM) AMGN, NFLX, VLTR, TXN, ZION
Tuesday: (AM) AKS, BP, CPLA, COLM, CMI, NOV, OSIS, PCAR, BTU, SHW, SPG, TLAB, UA, UPS;
(PM) AMZN, BRCM, DWA, ESRX, FFIV, HGSI, ILMN, PNRA, WBSN
Wednesday: (AM) ATI, BA, COP, GLW, F, HES, JBLU, VSI; (PM) AEM, AKAM, ACOM, CA, EQIX, SFLY, SKX, SYMC, V
Thursday: (AM) AET, ABX, BMY, CELG, CTXS, CLW, JCI, OXY, POT, PCP, UTHR, YNDX;
(PM) AMD, ASMI, AMAG, BIDU, EPAY, CLF, CSTR, CROX, GILD, SWN, VRTX, VPRT
Friday: (AM) BIIB, CVX, CVC, ITT, WY
While a big bulk of earnings is coming in this week, the market will likely have its attention on Europe. Nearest resistance for SPX is 1250. On the other hand, if Nasdaq breaks above 2650, it could break out. Financials could once again be the key. Industrials are strengthening. Metals and mining could be very important next week, with CAT reporting on Monday, and AKS, ATI, BTU, and CLF to follow later in the week.
Sector Watch
XLF (financials)
XLF had a good week, closing above $13. Its daily MAs have turned up. Financials could be the key for the broader market to break out of the recent trading range. GS is back above $100. WFC and JPM are also on the rise. PNC looks really strong. V will report on Wednesday after the market.
XME (metals and mining)
XME barely closed above its daily MAs. Its 10-day and 20-day MAs have turned up. This sector is very important as it telegraphs how investors feel about the global economic recovery. CAT and JOYG have suddenly became really strong in the past 3 weeks. We'll see how CAT reports on Monday morning.
MOO (agriculture)
MOO seems ready to break out. CF and MOS were strong last week. MON had a good earnings report recent and could be ready for another leg up.
USO (oil)
USO managed to stay above the daily MAs. While USO could stay range-bound, its recent strength has helped the energy stocks. BP, NOV, COP, CVX, and OXY are all reporting this week.
Good night and HappyTrading! ™
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