It was another wild week and the bulls took another beating. Last weekend, in my Market Forecast, I wrote:
"For the new week, the momentum has shifted back to the downside. Below 1300, 1280 is the nearest support for SPX. Nasdaq has support between 2700 and 2675. We may see light bounces earlier in the week, but, the market could sell into any rebound. Commodity stocks remain weak. Techs may be on the verge of breaking lower."
The selling pressure continued on Monday. While the market attempted to bounce on Tuesday, it was unable to hold the gains before the close. We cashed out on our NFLX and WYNN puts with solid profits. Wednesday only brought more downside. On Thursday, bulls tried to rally again after testing critical support levels. However, the market fell again on Friday and ended at the week's low.
For the week, the Dow was down 199.35 points; SPX fell 29.18 points; Nasdaq dropped 89.05 points. Gold actually ended slightly lower, and oil finished down as well. At the time of this writing, Asian markets were mostly lower. Let's see how the US market looks after Friday's close:
On Friday, SPX fell 18.02 points to close at 1270.98. Its daily MAs and MACD went down.
Nasdaq dropped 41.14 points to close at 2643.73. Its daily MAs and MACD also went down.
Both SPX and Nasdaq ended below their respective support levels. However, VIX closed just near 19, relatively low comparing to March's 20 to 30 range. For the new week...
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