Last weekend, in my Market Forecast, we discussed:
"For the new week, we'll have see if the Congress can reach an agreement to raise the debt ceiling. Earnings are important, but, before the debt ceiling is raised, the market could have a hard time breaking out of the recent trading range."
Indeed, the development in the debt ceiling talks pretty much controlled the market's mood last week. On Monday, the market tried to hold its ground and we cashed out on our AAPL winners. Tuesday, things slipped a little more. On Wednesday, the market broke down as the latest debt ceiling talks broke down. Thursday morning saw some buying, but, the market ended at day low. Uncertainty was in the air on Friday and the market slid further.
The market ended the month on a down note, but, we finished off some solid winning trades for July.
For the week, the Dow was down 537.92 points; SPX fell 52.74 points; Nasdaq dropped 102.45 points. Gold reached a new all-time high, trading over $1630/ounce, while oil fell back towards $95/barrel. At the time of this writing, Asian market were mostly higher, as the US Congress reached an agreement to raise the debt ceiling. Here's how the US market looked after Friday's close:
SPX slipped 8.39 points to close at 1292.28, below 1300. Its MACD went lower.
Nasdaq fell 9.87 points to close at 2756.38, just above 2750. Its MACD also slid.
Both SPX and Nasdaq fell to their respective lower BB. VIX popped to close above 25. For the new week...
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