Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Market Forecast + Sector Watch: SPX, Nasdaq, GLD, UUP, XME, XLF, GS, WFC, JPM, BAC, X, BTU, MEE, ANR, WLT

|Includes: BAC, BTU, SPDR Gold Trust ETF (GLD), GS, JPM, UUP, WFC, WLT, X, XLF, XME

 Subscribe via Email (FREE)

Last weekend, in my Market Forecast, I said:

"For the new week, the market looks to continue its bounce.  To stop the quick pullback from turning into a correction, the market must break and keep above SPX 1200.  The market's recent pullback was fast, so it'll take a strong bounce to restore the momentum to the upside.  Above 1200, SPX should test 1220 again.  Nasdaq should gain upwards momentum above 2550.  Gold remains an import indicator, but, the relationship may not be completely linear.  Metals and mining seems to be the engine of this rally right now.  Techs will run along as long as the broader market is strong.  We'll still need to see strength back into the financials."

It was a short week with Thanksgiving Day on Thursday and a half-day on Friday.  Financials remained weak and the market had a hard time rallying.  Techs were stronger than the overall market, but, neither SPX nor the Nasdaq could break above their respective resistance levels.  On Monday, SPX came close to 1200, but, weakness resumes on Tuesday.  The market popped again on Wednesday, but, saw no follow-through on Friday's light-volumed half-day.  The week ended mixed with the Dow and SPX in the red, while Nasdaq eked out a gain.

For the week, the Dow was down 111.55 points; SPX lost 10.33 points; Nasdaq added +16.44 points.  Both gold and oil made small bounces with gold closing above $1360/ounce and oil above $84/barrel.  At the time of this writing, Asian markets were mostly higher, but not by much.  China (Shanghai Composite) was still weak.  Here's how the US market looks after Friday's close:

SPX

SPX fell 8.95 points to close at 1189.4.  It closed below its daily MAs.  The MACD slid.

Nasdaq

Nasdaq lost 8.56 points to close at 2534.56.  It closed above its daily MAs.  Its MACD stayed flat.

Market closed mixed last week, with strength mainly in techs.  Financials and industrials were weak.  VIX popped up to close above 22, showing some caution.  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 11/29/10.

(click to see our Facebook Page)