Last weekend, in my Market Forecast, we discussed,
"For the new week, while earnings reports are still coming in, the market may look to be defensive as Egypt worries may still weigh on the market. Gold and silver should see more buyers as investors take some risks off from equities. We'll have to see how energy stocks trade if oil does push higher. Miners may also be in focus as merger activities heat up in the coal space."
On Monday, the market was cautious, but, still bounced a little higher. Energy stocks did push higher. On Tuesday, the market rallied on strong data from the manufacturing sector, and the Dow closed above 12,000. Wednesday and Thursday saw some volatile trading in a tight range as the market digested the latest economic data and earnings reports. On Friday, the market experienced some initial weakness after seeing that the unemployment rate had dropped to 9%. But, soon the rally continued into the close, and, the market closed at new highs for the year. We traded on both sides and came away with winners on both calls and puts.
For the week, the Dow was up +268.45 points; SPX add +34.53 points; Nasdaq gained +82.41 points. Gold ended slightly higher, while oil slipped a little. At the time of this writing, Asian markets were mixed. China and Taiwan were still closed for Chinese New Year. Let's take a look at the US market after Friday's close:
On Friday, SPX added +3.77 points to close at 1310.87. Its daily MAs and MACD went up.
Nasdaq gained +15.42 points to close at 2769.30. Its daily MAs turned higher and MACD glided up.
Both SPX and Nasdaq closed at multi-year highs. VIX dropped below 16. However, the support at 16 has been really strong and has not been broken for 3 years! For the new week...
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