Wang’s Happy Trading

It’s 2008!! Happy New Year!!

Well, on the last day of 2007 (Monday), the market was very volatile, especially in the last hour. The Dow was down 101.05 points; SPX slid 10.13 points; Nasdaq gave up 22.18 points. The US market ended lower, but, did manage to record gains for the whole year.

Let’s see how the market looked after 2007:

VIX jumped another +8.49%! HGX (housing) gained +1.45% and XLF (financials) was nearly flat. UNG (natural gas) added +2.03%. MOO (agriculture) was able to close on the green side. Most other sectors were on the weak side.

SPX

SPX lost 10.13 points to close at 1468.36. It closed just above the 30-day MA. The MACD slid a little.

Nasdaq

Nasdaq gave up 22.18 points to close at 2652.28. It closed below the 20-day MA and right at the 10-day MA. The MACD slid.

The market will start 2008 on somewhat of a neutral ground. It tested the resistance levels (Nasdaq 2725 and SPX 1500), but, did not break above. Now, it is sitting above the 30-day MA. We’ll have to see how the market performs for the rest of the week. Penetrating below the 30-day MA, we’ll have Nasdaq 2625 and SPX 1440 as the nearest strong support levels. If the market bounces, it’ll need to go above the recently tested resistance levels (Nasdaq 2725 and SPX 1500) to present a more bullish picture. So, I’m going to try to be a little more patient and wait for clearer indicators from the market.

Good night and HappyTrading! ™