Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Market Forecast + Sector Watch: SPX, Nasdaq, USO, GLD, SOXX, OIH, BRCM, QCOM, ALTR, FNSR, SLB, NOV, RIG, DO

|Includes:ALTR, AVGO, DO, FNSR, GLD, NOV, OIH, QCOM, RIG, SLB, SOXX, The United States Oil ETF, LP (USO)

Last weekend, in my Market Forecast, we discussed,

"For the new week, the market needs to consolidate, to say the least, after such a powerful run.  Techs have been strong and they are the new leaders on the upside.  To break out SPX would have to go above 1250 and Nasdaq would need to rise above 2650.  On the other hand, if the market were to break down again, the financials should tell the story.  Remember SPX 1200 and Nasdaq 2550?  This market has danced up-and-down-and-around these levels.  So, we may see them tested again."

The market struggled around SPX 1200 and Nasdaq 2550 on Monday and Tuesday, and mostly of Wednesday.  Starting on Tuesday, we were already trading on both sides, both calls and puts, and captured profits on both sides.  On Wednesday, after the Fed's cautious comment on the economy, the market took a big falls and closed below SPX 1200 and Nasdaq 2550.  On Thursday, the market took a big drop.  We played more quick downside trades in the Trading Room and cashed out on an overnight +90% win on YOKU puts.  Friday saw some slightly bounces and the market closed slightly up.

We wrapped up another winning week with profits from both sides.

For the week, the Dow was down 737.61 points; SPX tumbled 79.58 points; Nasdaq dropped 139.08 points.  Both oil and gold took big falls as well.  Oil went below $80/barrel and gold fell below $1650/ounce.  At the time of this writing, Asian markets were mostly down.  Here's how the US market closed on Friday:

SPX

SPX added +6.87 points to close at 1136.43.  Its daily MAs and MACD were slightly lower.

Nasdaq

Nasdaq gained +27.56 points to close at 2483.23.  Its daily MAs went up while the MACD slid.

Both SPX and Nasdaq closed below their respective daily MAs.  VIX popped and closed above 40 last week.  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 9/25/11.

Stocks: USO, GLD, SOXX, OIH, AVGO, QCOM, ALTR, FNSR, SLB, NOV, RIG, DO