Last weekend, in my Market Forecast, I wrote,
"For the new week, the market still looks strong and the market indices look like they could break out. For a breakout to happen, VIX will likely have to break the support at 16. Financials have been lagging. If the market breaks out, we should some strengthening in the financial sector. Earnings are still coming in: important ones include DIS (after market) on Tuesday, AGU (before market), CSCO and WFMI (after market) on Wednesday. The political situation in Egypt is still uncertain, so, we may see oil bounce, which could drive commodity sectors higher."
Indeed, VIX closed below 16, financials strengthened, and the market broke out higher. However, commodity sectors remained weak as Egypt's President stepped down. On Monday and Tuesday, the market pushed higher and we locked in some profits. On Wednesday, the market saw some profit-taking. Thursday started out on a weak note, but, climbed back into the green as rumors about Egypt's President stepping down drew buyers back in. Thursday evening saw some confusion as Egypt's President passed his powers to the Vice President without mentioned a stepdown. However, investors cheered as Egypt President's stepping down was confirmed, and, the market broke out higher.
For the week, the Dow was up +449.56 points; SPX added +18.28 points; Nasdaq gained +40.14 points. Gold and silver bounced higher, while oil traded down. At the time of this writing, Asian markets were bouncing higher, after last week's sharp fall. Here's how the US market looked after Friday's close:
SPX added +7.28 points to close at 1329.15. Its daily MAs and MACD continued to glide up.
Nasdaq gained +18.99 points to close at 2809.44. Its daily MAs and MACD went higher.
As mentioned above, VIX closed below 16 for the week and the market broke out higher. SPX closed just shy of 1330 and Nasdaq managed to rise above 2800. For the new week...
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