Last weekend, in my Market Forecast, I said,
"For the new week, the market will start the week in a neutral position. If SPX and Nasdaq can rise above their respective daily MAs, the market can rally higher. The immediate resistance levels above the daily MAs are SPX 1080 and Nasdaq 2150. Although VIX closed below 25, we might see a quick test of that level early in the week. If VIX again poses resistance at 25, it'll be a bullish sign for the market. The Dow is actually leading the broader market, and, closing above 10,000, is already carrying a more bullish tone. Financials and semiconductors are still a bit weak, and, will need to see renewed strength in these sectors to help to the market run higher."
Indeed, things pretty much happened as forecasted again. On Monday, the market jumped above the daily MAs, as financials and semiconductors bounced. The Dow led the broader market, hitting a new 2009 high. On Tuesday, the market took a breather and saw minor profit-taking. On Wednesday, the market rallied to test SPX 1100 and we locked in some solid profits. On Thursday, energy sectors were weak and pulled the market back. On Friday, the market regained its footing and finished a winning week on a strong note. We also finished a very nice week with many triple-digit gain winners!
For the week, the Dow added +247.05 points; SPX added +24.18 points; Nasdaq gained +55.44 points. Oil lost some grounds. Gold continued to make new highs. A lot of attention was on the dollar, which fell lower. At the time of this writing, Asian markets were mostly higher. The Chinese market was up more than +2%! Gold traded around $1130/ounce. Let's see how the US market looks after Friday's close.
Both SPX and Nasdaq closed above their respective daily MAs, and the MAs are pointing up again. VIX came down, but, finished above 23. For the new week...
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