What a week it was! SPX went as high as 1307.38, and as low as 1168.09, a huge range of almost 140 points! The Dow had a range of nearly 1150 points!! In my Market Forecast last weekend, I said:
"For the new week, it'll be a busy week with lots potential market drivers. First, we'll have to see how strongly the market can rally on the new debt agreement. Second, lots of economic data are coming out next week, including ISM services, ADP data, and the latest unemployment rate! Third, we still have lots of earnings coming in. The market's momentum turned to the downside last week and will take a lot of buying to return in to the upside."
On Monday and Tuesday, we cashed out on our long positions and started trading on the shortside. ISM and ADP data came in lower than expected. The market sold off more. On Wednesday, I cautioned our members that we may see SPX hitting 1200 in one big down move! On Thursday, it happened! Friday was a very volatile day, as I said on Thursday night, "I think we'll see a mixed market tomorrow. You'll probably see big traders making some big trades since it is Friday and weekly options will expire."
In a week for the books, the Dow was down 698.63 points; SPX fell 92.9 points; Nasdaq lost 223.97 points. Oil fell to about $86/barrel and gold went higher, closing above $1650/ounce. At the time of this writing, Asian markets were sharply lower. Let's take a look at where the US market stands after Friday's close:
On Friday, SPX slid 0.69 points to close at 1199.38, just under 1200. The daily MAs and MACD curved lower.
Nasdaq fell 23.98 points to close at 2532.41, below 2550. The daily MAs and MACD continued lower.
Both SPX and Nasdaq fell sharply last week. VIX went above 39, but, closed at 32. For the new week...
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