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Market Forecast + Sector Watch: SPX, Nasdaq, XLF, XME, XLE, GLD, SLV, AA, JPM, GOOG, CME, ICE, MA, V, GS

|Includes: AA, CME, GLD, GOOG, GS, ICE, JPM, MA, SLV, V, XLE, Financial Select Sector SPDR ETF (XLF), XME

Happy Columbus Day Sunday!

Last weekend, in my Market Forecast, we discussed:

"For the new week, the market could continue to see more downsides. SPX 1120 is the first resistance. If that breaks down, we could easily see 1100 tested again. Commodity sectors have fallen quite a bit. Financials are barely hanging on. If the financials break, selling pressure should pick up. Techs have remained relatively stronger."

On Monday, the market did indeed come down to test SPX 1100. On Tuesday, the market dipped lower in the morning and went below 1080. We quickly locked in our profits in downside plays. The market bounced violently just before the close. On Wednesday and Thursday, the market pushed higher, and, we cashed in on our longisde plays. On Thursday, I cautioned our members to raise cash and that the market could see a quick pullback:
October 6, 2011 8:22 AM
I cashed out on many positions this morning and collected cash. will check in later...

October 6, 2011 12:29 PM
looking for a quick pullback... be careful...

We hung on to small positions on the long side on Thursday in case the market market would react positively to the jobs report. On Friday, even though the jobs report was better than expected, European countries got downgraded, which gave the market a reason to take profits. Although we gave back some gains, we still finished a very nice week with profits on both sides.

For the week, the Dow was up +189.74 points; SPX added +24.04 points; Nasdaq gained +63.95 points. Gold was slight up, while oil bounced back above $83/barrel. At the time of this writing, Asian markets were slightly lower. Here's how the US market looked after Friday's close:


SPX slipped 9.51 points to close at 1155.46. It closed below its 30-day MA. The MACD went up.


Nasdaq dropped 27.47 points to close at 2479.35. It managed to stay above its 10-day MA. Its MACD was up.

Both SPX and Nasdaq were unable to close above their respective 30-day MAs. VIX continued to stay elevated. For the new week...

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