MyHappyTrading's  Instablog

Last weekend, in my Market Forecast, I wrote:

"For the new week, the market might need a day or two more to consolidate. We saw some profit-taking and consolidation last Friday...AA, JPM, GOOG could be market movers. AA's report could be very important. The mining sector has just been pounded recently. Without the mining sector, the broader market could find it hard to rally higher. JPM is even more crucial, as the financials can easily dictate the market's mood. On the upside, if the market goes above SPX 1180, we could see 1200 to 1220 tested. On the downside, if SPX 1140 breaks down, we could easily see 1100 again."

Things once again came pretty close to the forecast. On Monday, the market opened strongly on encouraging news from Europe. Within the first 30 minutes of trading, SPX was already above 1180. Tuesday, the market tested 1200 and we locked in gains on our longside trades, including a +235% overnight win on AAPL. Although AA's earnings were so hot, on Wednesday morning, JPM's better-than-expected quarter overpowered AA's softness. The market popped higher to test SPX 1220. Thursday saw consolidation and some profit-taking. But, after the market, GOOG delivered a very strong earnings report. The market continued to glide higher on Friday, and pushed above 1220 for the close in the last 15 minutes of trading.

We also finished a strong week, with 100% of the closed trades in the GR$$N. The fast trades in the Trading Room gave us even bigger winners!

For the week, the Dow was up +541.37 points; SPX added +69.12 points; Nasdaq gained +188.5 points. Both gold and oil went up. Gold closed above $1680/ounce and oil finished above $87/barrel. At the time of this writing, Asian markets were mostly higher. Let's see where the US market stood after Friday's close:

SPX

On Friday, SPX added +20.92 points to close at 1224.58. Its 10-day MA and MACD went up.

Nasdaq

Nasdaq gained +47.61 points to close at 2667.85. Its daily MAs and MACD went higher.

Both SPX and Nasdaq closed just above their respective resistance levels (SPX 1220; Nasdaq 1650). For the new week...

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