Last weekend, in my Market Forecast, I wrote,
"For the new week... While a big bulk of earnings is coming in this week, the market will likely have its attention on Europe. Nearest resistance for SPX is 1250. On the other hand, if Nasdaq breaks above 2650, it could break out. Financials could once again be the key. Industrials are strengthening. Metals and mining could be very important next week..."
On Monday, the market popped above SPX 1250. But, the market reversed its direction on Tuesday, giving back all the gains made on Monday. Wednesday was a turn-around day, as we discussed in the Trading Room. That evening, Europe reached a deal for Greek debts. The market went on an amazing rally on Thursday, and we locked an overnight profits. Friday, as expected, was a tightly ranged day.
For the week, the Dow was up +422.32 points; SPX added +46.84 points; Nasdaq gained +99.69 points. Both gold and oil went higher as well, with gold trading above $1740/ounce and oil climbing above $92/barrel. This eveing, at the time of this writing, Asian markets were mostly seeing some profit-taking. Let's take a look at how the US market closed on Friday:
On Friday, SPX added +0.5 point to close at 1285.09. The daily MAs and MACD glided up.
Nasdaq slid 1.48 points to close at 2737.15. Its daily MAs and MACD were up slightly.
Both SPX and Nasdaq closed above the recent trading range. For the new week...
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