Last weekend, in my Market Forecast, I wrote:
"For the new week, the help that eurozone governments have committed to Greece should inspire the market to a strong start. We could easily see SPX 1200 tested. Nasdaq can rise to test 2480. We'll also see the beginning of the earnings season, with AA reporting after the close on Monday. Tuesday after market, we'll hear from INTC. JPM delivers on Wednesday morning. Thursday afternoon, GOOG will announce its quarterly results. Finally, on Friday morning, BAC shows its report card."
Once again, things unfolded as forecasted. The market got off to a good start on Monday, cheering the news on Greence. On Tuesday, the market kept its bullish stance, awaiting earnings from INTC and JPM. After the market, INTC reported a "blowout" quarter! On Wednesday, JPM delivered strong earnings and the market was off to the races! Nasdaq opened above 2480 and closed above 2500. SPX went above 2010. On Thursday, the market was slightly higher, but, saw profit-taking in after-hours trading even though earnings were good. As discussed in my article that evening, the market looked ready for a pullback. On Friday, the market started out weak. At about 10:30 AM ET, SEC charged Goldman Sachs with fraud, and, the selling momentum picked up. We had a pretty good week with some "fast-money" trading in the Trading Room.
For the week, the market still made gains. The Dow still closed above 11,000, up +81.71 points; SPX added +14.03 points; Nasdaq gained +27.21 points. Both gold and oil lost grounds. This evening, Asian markets were mostly down, digesting the news on fraud charges agains Goldman Sachs. Here's how the US market looks after Friday's close:
Nasdaq came close to its 10-day MA and bounced back while SPX closed under. VIX jumped as high as 19.7 on Friday before closing above 18. For the new week...
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