MyHappyTrading's  Instablog

Market suffered another down week last week.  But, we used the selling to our advantage and had a great week and took Friday off to have a nice, long Thanksgiving weekend.

Last weekend, in my Market Forecast, we discussed:

"For the new week, the market starts in a very vulnerable position.  Immediate support for SPX is at 1200, but we could see 1180 tested on a quick, sharp fall.  Not only will the market be worrying over Europe, the US Congress may create even more pull on the downside as it tries to reach a deal for the budget.  Financials once again look weak.  Oil has had an impressive run, but, is starting to appear toppy."

Things pretty much happened as forecasted, once again.  On Monday morning, the market sank below SPX 1200 within the first 30 minutes and it was downhill from there.  We locked in intraday profits with +132% gain on SINA puts.  On Tuesday, the market traded flat, testing SPX 1180.  I warned that if SPX 1180 does that hold, we were going to see another leg down.  On Wednesday, within the first 30 minutes of trading, the market dropped below SPX 1180, and the selloff continued.  We locked in more gains to prepare for the long weekend for Thanksgiving.  Friday was a half-day, and, the market was basically flat.

For the week, the Dow was down 564.38 points; SPX dropped 56.98 points; Nasdaq tumbled 130.99 points.  Both gold and oil traded lower.  At the time of this writing, Asian markets were mostly higher on new developments in Europe.  Here's where the US market closed on Friday:

SPX

On Friday, SPX slid 3.12 points to close at 1158.67.  Its daily MAs and MACD went lower.

Nasdaq

Nasdaq fell 18.57 points to close at 2441.51, below 2450.  Its daily MAs and MACD curved down.

Both SPX and Nasdaq too sharp falls and VIX rose to mid-30s again.  For the new week...

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