MyHappyTrading's  Instablog

Last weekend, in my Market Forecast, I wrote:

"For the new week, both SPX and Nasdaq are showing a new bullish formation in their respective daily MAs.  Nasdaq is basically at the resistance set back in January, 2325.  SPX's next resistance is at 1150.  Above these resistance level, the market could break out to a new leg higher.  We many see a Monday follow-through rally for the US market.  But, the market has gone quite far, so it may need a breather through the mid-week.  If the market can hold its altitude while letting off some steam, we could see the market push higher by the end of the week.  Again, techs should be strong in a bullish environment.  Financials and miners will be very important to watch.  The financial sector is on the verge of breaking out and could help determine whether the broader market itself can push higher.  The coal stocks have been very strong and are giving the whole mining sector a bullish tone."

Indeed, things happened as forecast.  From Monday through Wednesday, the market treaded water and traded in a tight range.  Both techs and financials stayed strong and glided higher.  On Thursday, with 2 hours left in trading, the market decided to make a push for SPX 1150.  Friday was a quiet day, and SPX closed right at 1150 for the week.  On the other hand, Nasdaq crossed above that 2325 and kept on going.  We cashed in on many of our trades and finished a solid week, including a +205% winner on GOOG.

For the week, the Dow was only up +58.49 points; SPX added +11.24 points; Nasdaq gained +41.31 points.  Commodity sectors were weak.  Both gold and oil ended down for the week.  However, the dollar was also lower, as euros got a bounce.  This evening at the time of this writing, Asian market were mostly down.  Gold was slightly up and oil was flat.  Let's see how the US markets look after Friday's close:

SPX

On Friday, SPX slid 0.25 points to close at 1149.99.  Its daily MAs and MACD went up.

Nasdaq

Nasdaq slipped 0.8 points to close at 2367.66.  Its daily MAs and MACD were higher.

Both SPX and Nasdaq have been riding higher along their respective daily upper BB.  Both are also showing well-developed bullish formations in their respective daily MAs.  VIX closed under 18.  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 3/15/10.