Last weekend, in my Market Forecast, I said:
"The market is in a range right now, consolidating after 2 weeks of sharp rally. As soon as the Congress reaches a resolution/compromise to raise the debt ceiling, the market should breathe more easily. Until then, we'll likely see stocks being driven by earnings."
The market did stay range-bound. However, as the discussion to raise debt ceiling showed progress, market market higher. On Monday, the market sank lower, but, bounced on Tuesday. Earnings were mostly on the positive side, as AAPL reported a blowout quarter on Tuesday evening. On Wednesday, the market stalled again, but, pushed higher on Thursday as debt ceiling talks showed promise. When Friday came along and there were still no results regarding raising the debt ceiling, the market traded flat again.
For the week, the Dow was up +201.43 points; SPX added +28.88 points; Nasdaq gained 69.03 points. Gold and oil both went higher. At the time of this writing, Asian markets were mostly lower, as the US Republicans and Democrats still can't seem to get an agreement on the terms to raise the debt ceiling. Let's take a look at how the US market closed on Friday:
SPX added +1.22 points to close at 1345.02. The daily MAs and MACD went higher.
Nasdaq gained +24.4. points to close at 2858.83. Its daily MAs and MACD also went up.
Both SPX and Nasdaq closed above their respective daily MAs, but, still not breaking the resistance levels. For the new week...
To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page. If you are already a subscriber, please click here: Market Forecast 7/24/11.