Last weekend, in my Market Forecast, I wrote,
"For the new week, the market ended last week with a neutral stance and will need to see some strength early in the week to break higher. Earnings will start to come in with YUM on Tuesday and AA on Thursday. The market will still need to break above that SPX 1160 to get a new leg up."
Things once again happened as forecasted. On Monday, the market pulled back on weakness in the mining and energy stocks, as discussed in last week's Sector Watch. But, on Tuesday, the market's strength returned in a big way, as investors cheered better-than-expected ISM Services data. We were on GOOG weekly calls which doubled in a few hours! The market tested SPX 1160 from Tuesday through Thursday and waited for the unemployment report on Friday. On Friday, the unemployment report did not show much improvement. But, investors looked ahead to more help from the Fed and drove the market higher. The major market indices closed above key resistances with SPX closed above 1160. We finished another good week with nice trades on both sides!
For the week, the Dow was up +176.8 points; SPX added +19.91 points; Nasdaq gained +31.16 points. Gold continued to make new record highs, going above $1350/ounce. Oil traded slightly higher. At the time of this writing, Asian markets were mostly higher. Here's how the US market looked after Friday's close:
Both SPX and Nasdaq closed above their respective resistances, SPX 1160 and Nasdaq 2400. However, Nasdaq is lagging the broader market as cloud computing stocks were battered last week. For the new week...
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