Last weekend, in my Market Forecast, we discussed:
"For the new week, the market may need a couple of days to consolidate a bit. The market found support at SPX 1120 on the last fall. This time, some buyers may come in as well. However, the momentum is still on the downside. If SPX 1120 breaks down, 1100 is the next support."
On Monday, we saw the market consolidate and test 1120. However, SPX 1120 held up. On Tuesday, buyers started to trickle in. We took profits our downside trades and started trading on the upside. Wednesday and Thursday were volatile, but, we traded on both sides again and caught winners both ways. After the initial weakness on Friday, the market rallied after Bernanke gave his speach.
For the week, the Dow was up +466.89 points; SPX added +53.27 points; Nasdaq gained +138.01 points. Gold took a quick drop at the beginning of the week, but, bounced strongly on Thursday and Friday, closing above $1820/ounce. Oil was little changed, finishing around $85/barrel. At the time of this writing, Asian markets were up, but, China was down. Here's how the US market looked after Friday's close:
On Friday, SPX added +17.53 points to close at 1176.8. It closed above its 10-day MA and the MACD went higher.
Nasdaq gained +60.22 points to close at 2479.85, also above the 10-day MA. Its MACD turned up.
Both SPX and Nasdaq tested their respective support levels last week and bounced up. However, the downward pressure was still heavy and the market went through another volatile week. For the new week...
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