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Market Forecast + Sector Watch: SPX, Nasdaq, USO, GLD, XLF, SOXX, ALTR, XLNX, CIEN, FNSR, APKT, NDAQ, ICE, SLW, SSRI, PAAS, SLV


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Last weekend, in my Market Forecast, we discussed:

"For the new week, geo-political issues may still pressure the markets.  Libya's political unrest is still unresolved.  With oil pushing higher, the market could see more selling.  Economic data can also come into play, with unemployment rate being released on Friday.  We may see volatile trading early in the week.  But, if SPX falls below 1300, be very careful.  With oil rising, energy stocks should be in focus.  Gold and silver plays could also be interesting if the market falls further."

I also said,

"If SOXX continues to push higher, we may not see the present pullback go much lower.  So, we'll be watch SOXX carefully.  FNSR, CIEN, ARMH, APKT, FFIV, all rallied on CRM's earnings."

Indeed, oil did pop higher and the market took a sharp fall on TuesdayWe took some profits off of some quick downside plays.  On Wednesday, the market was volatile and SOXX bounced, as JP Morgan upgraded the sector.  On Thursday, the market rallied on encouraging jobs data.  On Friday, although the unemployment rate fell below 9%, higher oil dampened the market's spirit.  However, we did see pockets of strength in the names mentioned in last weekend's Sector Watch.  We wrapped up a solid week with winning trades on both sides.

For the week, the Dow was up +39.43 points; SPX added +1.27 points; Nasdaq gained +3.62 points.  Both oil and gold went higher.  Oil went above $104/barrel and gold jumped above $1435/ounce.  At the time of this writing, Asian markets were mostly lower.  Shanghai Index (China), however, was trading higher.  Here's how the US market looked after Friday's close:


On Friday, SPX lost 9.82 points to close at 1321.15.  Its 10-day MA and MACD turned down.


Nasdaq fell 14.07 points to close at 2784.67.  Its 10-day MA went lower while its MACD stayed flat.

The market was volatile last week and the market indices ended slightly higher for the week.  VIX was slightly down, but, stayed above 19.  For the new week...

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