Last weekend, in my Market Forecast, I wrote:
"First resistance is at 1360, but, this market could run up to test 1380. As discussed last week, financials and energy sectors led the charge. Both sectors have turned bullish. If the tech stocks start to move up, the market could get a lot more fuel to rally."
On Monday, the market floated up slightly. But, Tuesday' solid rally brought SPX up to test 1360. We locked in our profits on the longside. Wednesday saw a bit of consolidation, and the market took a quick pullback on Thursday as the market braces for Moody's bank downgrades. Some buyers came back in on Friday and the market clawed back some gains. We finished a nice strong week, with most of our trades rendering nice gains.
For the week, the Dow was down 126.39 points; SPX slid 7.82 points; Nasdaq gained +19.62 points. Both gold and oil took sizable drops last week, with gold finishing around $1575/ounce and oil closing below $80/barrel. This evening, at the time of this writing, Asian markets were slightly on the weak side. Here's how the US market looked after Friday's close:
SPX added +9.51 points to close at 1335.02. It closed just above its daily MAs. The MACD was flat.
Nasdaq gained +33.33 points to close at 2892.42. It also went above its daily MAs. MACD was up.
Thursday's drop was quite steep, erasing the week's gain. Friday's bounce did bring Nasdaq positive for the week, but, left SPX slightly in the red. VIX popped above 20 on Thursday, but, came back down on Friday. It still managed to close above 18. For the 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 6/24/12.