Last weekend, in my Market Forecast, we discussed:
"For the new week, the market could break out and make new highs for the year. Above 1220, SPX could test 1250. For Nasdaq, above 2600, it could see 2730. VIX has seen some pretty strong support at 18. It might fight a little more with it to start the week. But, once 18 is broken, VIX could test 16. Both oil and gold look strong, and, in the present market environment, these are bullish signs for the stock market. Financials bounced strongly since last Wednesday, which is also bullish for the market. The internet sector is shaping up strongly and should be something that we keep a keen eye on."
Things once again happened as forecasted. VIX fought desparately with the support at 18 from Monday to Wednesday. The market tried to break higher on Tuesday, but, pulled back in the afternoon as gold fell hard. On Wednesday, SPX tested 1220 once again but was able to close higher. On Thursday, VIX finally closed below 18, and, the market pushed above November highs. The market was very strong on Friday, gradually climbing higher until the close. SPX closed above 1240. Financials continued to be strong, leading the market.
For the week, the Dow was up +28.23 points; SPX added +15.69 points; Nasdaq gained +46.08 points. Both gold and oil went lower. At the time of this writing, Asian markets were mostly higher. Here's how the US market looks after Friday's close:
On Friday, SPX added +7.4 points to close at 1240.40. Its daily MAs and MACD continued higher.
Nasdaq gained +20.87 points to close at 2637.54. Daily MAs and MACD went up as well.
Nadsaq is now above the level when the crash in 2008 started. SPX is back to the level just before the precipitous fall in Oct 2008. VIX closed the week below 18. For the new week...
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