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Last weekend, in my Market Forecast, I wrote:
"For the new week, the market may be hesitant ahead of the FOMC meeting on Tuesday. But, if VIX comes down below 22, we could see the market test SPX 1140, especially if mining and financial stocks gain some strength. On the down side, 1120 is SPX's immediate support."
The market once again behaved as forecasted. On Monday, VIX came down below 22, and the market tested SPX 1140. We cashed out on a GOOG trade for a +113% gain. However, on Tuesday, the market was hesitant ahead of and after the FOMC meeting. I mentioned in the Trading Room that SPX may pull back to between 1120 and 1125:
September 21, 2010 8:32 AM
can see a quick pullback to test 1120-1125 in the next couple of days...
On Wednesday, the market started to slid. After a surprise rise in the jobless claims, the market sank to as low as 1122.79 on Thursday. NFLX, however, was trading against the market and we caught another overnight double in the Trading Room with NFLX's weekly calls. On Friday, the market jumped right back, with VIX dropping below 22 once again, as bullish manufacturing data boosted investors' confidence about the economy. Both mining and financial sectors were strong. We wrapped up a very nice week with some nice gains in trades on GOOG and AMZN.
For the week, the Dow was up +252.41 points; SPX added +23.08 points; Nasdaq gained +64.61 points. Gold soared to new record highs, trading just below $1300/ounce. Oil went slightly higher, above $76/barrel. At the time of this writing, Asian markets were mostly higher. Here's how the US market looks after Friday's close:
Both SPX and Nasdaq closed above their respective trading ranges. SPX closed above 1140 and Nasdaq cleared 2350. VIX came down to close below 22. For the new week...
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