Last weekend, in my Market Forecast, I wrote:
"For the new week, the market will start out with pressure from S&P's downgrade of US debt from AAA to AA+. For SPX, if 1180 does not hold, we could see 1150 tested. Nasdaq has some support between 2450 and 2400."
Indeed, the market sharp fall on Monday, and, in the Trading Room, we were looking at support at SPX 1120:
August 8, 2011 11:17 AM
next support 1120
As the market went lower, gold rose higher; and, we locked in profits on GLD calls and YOKU puts. Tuesday was a volatile day as the market awaits reaction to Fed's comments from the FOMC meeting. It ended with a big pop in the last hour. That pop faded on Wednesday as the market retested SPX 1120. Thursday and Friday saw more buyers come in and the market finally got some traction. SPX pretty much climbed back up to 1180, and, Nasdaq finished just above 2500.
For the week, the Dow was down 175.59 points; SPX fell 20.57 points; Nasdaq lost 24.43 points. Gold made a new all-time to trade briefly above $1800/ounce and closed above $1750/ounce. Oil dropped to about $85/barrel. Tonight, at the time of this writing, Asian markets were mostly up. Here's how the US market looked after Friday's close:
On Friday, SPX gained +6.17 points to close at 1178.81, just below 1180. Its MACD flattened.
Nasdaq gained +15.3 points to close at 2507.98, just above 2500. Its daily MAs slipped, but, the MACD was higher.
As mentioned above, SPX climbed back up to just about 1180 and Nasdaq finished above 2500. VIX went all the way to 48 early in the week, but, came back down to about 36 on Friday. For the new week...
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