Last weekend, in my Market Forecast, I wrote:
"For the new week, we might see some sideways trading to start the week. Miners may need to let off some more steam, although some other sectors are just starting to show breakout signs. SPX has support at 1060 and Nasdaq needs to stay above 2120. Again, we'll need to see both indices stick close to their daily upper BB to keep this rally going."
Again, the market behaved according to the forecast. From Monday through Wednesday, the market treaded water and traded sideways. The market started to look weak on Wednesday morning, and, we began to raise cash and close our long positions. After the FOMC meeting, the market was not able to hold its rally and did a sharp reversal to close lower. Although both SPX and Nasdaq stayed just above the support levels (SPX 1060; Nasdaq 2120) discussed in the forecast, they were unable to stick close to their daily upper BB. On Thursday, the market broke below the near-term support levels and RIMM earnings report disappointed investors. Miners led the market on the downside. On Friday, the market slid some more. Regardless, we closed out on another lucrative month!
For the week, the Dow was down 155.01 points; SPX fell 23.92 points; Nasdaq lost 41.44 points. Both crude oil and gold prices traded lower. Crude went below $70/barrel and gold fell below $1000/ounce. This evening, at the time of this writing, Asian markets were mostly down. The Japanese Nikkei Index was particularly vulnerable on the rising Yen. Let's see where the US market stands after Friday's close:
Both SPX and Nasdaq have fell below their 10-day MAs. VIX has risen back above 25. Oil has been slipping although the dollar is not particularly strong. Yen continues to rise and the Japanese market looks really weak. For the new week...
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