Last weekend, in my Market Forecast, I wrote,
"For the new week, the attention shifts to mid-term elections and details on Fed's QE2. There are plenty of more earnings coming in, some interesting ones include... SPX has been stuck in a range for 2 weeks now and could be ready for a big move. On the upside, the resistance is at 1200; on the downside, there's support between 1160 and 1170. Gold and silver are looking strong again after a quick pullback. We'll have to see how the market reacts to Fed's comments on Wednesday. Mining sector can push higher, although may need to wait until mid-week. Energy sector is becoming more interesting as natural gas has bounced up."
Indeed, the market was ready for a big move. UP! Things stayed really didn't go anywhere until after getting details on QE2. Gold and silver reached new highs as discussed. Energy and mining sector broke out. On Monday, the market climbed a bit higher before the midterm election. On Tuesday, market seemed optimistic while waiting for election results. We started locking some profits. On Wednesday, the market hesitated before Fed's comments; and, oscillating violently directly after Fed's announcement on QE2. The volatility was pretty normal right after a FOMC meeting. But, soon, the direction was clear. VIX dropped sharply and financials popped. SPX closed just below that 1200 resistance. On Thursday, the market jumped at open, above SPX 1200, and didn't look back. We captured more profits. Friday was a quieter day as more profits were being taken. The market stayed strong and closed in the green. We wrapped up a very nice week with a big winner on MEE in just 2 hours!
For the week, the Dow was up +325.59 points; SPX gained +42.59 points; Nasdaq jumped +71.57 points! Gold made a new all-time high, closing in on $1400/ounce. Oil also traded higher, nearing $87/barrel. This evening, at the time of this writing, Asian markets were mixed, with many slightly in the green. Here's how the US market looks after Friday's close:
Both SPX and Nasdaq pierced above their respective April highs. Nasdaq actually went back to its pre-2008-crash levels. VIX has sunken back to just above 18. For the new week...
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