This market has not gone anywhere for a couple of months (April, May). Everything it gained in late April was given back in May. Financials and commodity sectors have fallen lower, which we'll look at further in Sector Watch below.
Last weekend, in my Market Forecast, I said:
"For the new week, we'll once again be watching the support between SPX 1320 to 1310. Tech stocks will be especially important. Since commodity and financial stocks are already weak, if tech stocks fall, the broader market can dive into a correction. Nasdaq's first support is at 2775."
The market did indeed come down to challenge the support levels again. SPX came as low as 1311.8! Nasdaq came down to 2740. On Monday, market plunged as more focus was debt problems in Europe. However, buyers started to trickle in as SPX went below 1320. Goldman Sach's bullish prediction on strong oil on Tuesday helped to inspire a bounce in the commodity sectors. The market really did not find its bounce until Thursday as tech stocks pushed higher ahead of MRVL's earnings report. After the market, MRVL delivers a strong forecast. Friday saw some follow-through on the buying, despite mixed economic data, including weak jobs numbers.
For the week, the Dow was down 70.46 points; SPX slid 2.17 points; Nasdaq fell 6.46 points. Gold went higher, trading near $1340/ounce. Oil also rebounded, finishing above $100/barrel. At the time of this writing, Asian markets were mostly higher. The US markets closed on a positive note last week. Let's take a look:
SPX added +5.41 points to close at 1331.1. It closed above the 10-day MA. The MACD was slightly up.
Nasdaq gained +13.94 points to close at 2796.86. It also closed above its 10-day MA and its MACD turned higher.
Both SPX and Nasdaq finished the week above their respective support levels. They also finished right at the bullish trendline (discussed Tuesday on last week). VIX dipped down to close just below 16. For the new week...
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