Last weekend, in my Market Forecast, I wrote:
"For the new week, SPX should test 1250. But, after that, we could see some stuttering. Next week is options expiration week, so, we should expect some volatility. On the support side, the nearest level is 1220. Nasdaq is strong and we could see 2700+. But, if the market pulls back on profit-taking, techs should follow as well. Gold looks range-bound for now; so is oil. Financials just started waking up, but, have gone up fast and could use a breather."
Indeed, things traversed within the forecasted scenarios. SPX never did quite make to 1250, but, stuttered throughout the week. Both gold and oil stayed range-bound, and the financials took a breather. On Monday, the market basically ended flat after a strong morning. Tuesday was a similar story, although some highflyers pulled back and we locked in some quick profits on the downside. On Wednesday, the market pulled back a bit. However, dip buyers came in on Thursday morning and drove the market back up. The market was again testing the recent highs on Friday, but, did not break through.
For the week, the Dow was up +81.59 points; SPX added +3.51 points; Nasdaq gained +5.43 points. Both oil and gold ended a bit lower. At the time of this writing, Asian markets were mostly down. Gold is floating a bit higher. Let's take a look at how the US market closed on Friday:
On Friday, SPX added +1.04 points to clsoe at 1243.91. Its daily MAs and MACD were slightly up.
Nasdaq gained +5.66 points to close at 2652.97. its daily MAs adn MACD were also higher.
Both SPX and Nasdaq managed to stutter along sideways and holding their altitudes. VIX went below 16 on Friday and barely closed above. 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 12/20/10.