Last weekend, in my Market Forecast, we discussed:
"For the new week, the market looks range-bound, again; especially, with Friday being a holiday (Christmas Eve). On the upside, 1250 is still the resistance. On the downside, if the SPX goes below the 10-day MA, 1220 is the first support. Gold and oil both still look range-bound as well. Financials led the renewed December rally. So, we'll watch the financials carefully. Biotechs jumped last week and should deserve some attention."
Financials managed to keep its strength and climbed higher. Rest of the market followed through as well. On Monday, the market was flat. On Tuesday, coals rallied and pushed the market higher. The market followed through on Wednesday, pushing the market to new 2010 highs. On Thursday, we saw some slight profit-taking. However, SPX finished the wee above 1250 (The market was closed on Friday for Christmas). We didn't trade much last week, but, locked in some winners.
For the week, the Dow was up +81.58 points; SPX added +12.86 points; Nasdaq gained +22.63 points. Oil pushed above $91/barrel. Gold was flat, but, kept above $1380/ounce. This weekend, China raised its interest rates to fight inflation. At the time of this writing, Asian markets were mixed, but, mostly higher. Here's how the US market looked after Thursday's closed:
On Thursday, SPX slid 2.07 points to close at 1256.77, above 1250. The daily MAs went up. The MACD flattened.
Nasdaq fell 5.88 points to close at 2665.6. Its daily MAs went up slightly and the MACD was flat.
Both SPX and Nasdaq closed above their respective resistance levels (SPX 1250, Nasdaq 2650). VIX closed below 17. For the new week...
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