Last weekend, in my Market Forecast, I wrote:
"For the new week, we may get some continued bounces on Monday morning. But, the market still looks really weak. Both SPX and Nasdaq are showing newly developed bearish formations. Techs have been leading the selloff. We'll have to see if the AT&T/T-Mobile deal can inspire some speculative buying in the mobile internet space. Financials tried to bounce on Friday, and, could be a big factor in the new week. On the upside, SPX 1300 is now the resistance; and, for Nasdaq, it is Nasdaq 2700. On the downside, immediate support is at 1260 for SPX and 2600 for Nasdaq."
On Monday, the market jumped on AT&T/T-Mobile merger deal. On Tuesday, the market slipped backwards, but, mining stocks went higher. Wednesday, the market was weak in the morning, but, soon the market rallied and we jumped on plays on the long side. On Thursday, the market broke above SPX 1300 and Nasdaq 2700. We locked in overnight profits on our long-side plays. Friday, as expected, saw some profit-takiing in the afternoon and closed slightly up.
For the week, the Dow was up 362.07 points; SPX added +34.6 points; Nasdaq gained +99.39 points. Both oil and gold went higher. Gold recorded a new record high. At the time of this writing, Asian markets were mixed. China's Shanghai Composite Index traded over 3,000. Here's how the US market closed on Friday:
On Friday, SPX added +4.14 points to close at 1313.8. It closed above its 30-day MA. The MACD has a new bullish crossover.
Nasdaq gained +6.64 points to close at 2743.06. It closed right at its 30-day MA. The MACD went up.
As mentioned earlier, both SPX and Nasdaq have risen above their respective resistance level. SPX closed above its 30-day MA. VIX closed below 18. 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 3/27/11.