Wang's Happy Trading

from MyHappyTrading.com by HappyTrading! ™ Sign up for FREE membership!

Last weekend, in my Market Forecast, I said,

“For the new week, the market looks tired and may need to breathe a little.  SPX 800 and Nasdaq 1500 should now be supports.  So, we’ll keep our eyes on those levels.  I do not expect the market to come down too far, just yet.  But, we’ll see how SPX 800 and Nasdaq 1500 hold up.  SKF has been holding the support at $90 very well, and, it may need to come up to test the $100-$120 region.”

Indeed, on Monday, the market took a rest.  SPX went below 800 and Nasdaq went below 1500, although Nasdaq was able to bounce back and close above its support level.  SKF bounced back to $110!  But, that was about it!  On Tuesday, the market struggled to keep its altitude and it did!  On Wednesday, stocks resumed their climb and solars soared, especially the Chinese solar stocks!!  Thursday was a breakout day for the market, and we anticipated it with our call positions in place!  The market pushed higher again on Friday on the back of RIMM’s glorious quarterly report!!  It’s really amazing what the charts can tell you when you study them carefully!!

For the week, the Dow was up +241.41 points; SPX added +26.56 points; Nasdaq gained +76.67 points.  This week completed the market’s first 4-week winning streak since September 2008! 

So, can this market continue this streak?!  Let’s see…

SPX

On Friday, SPX added +8.12 points to close at 842.5.  The 30-day MA turned up.  The MACD continued higher.

Nasdaq

Nasdaq gained +19.24 points to close at 1621.87, above the 1600 level.  Its daily MAs and MACD went higher.

The major development in the charts from last week’s actions is that the 30-day MA finally turned up.  Now, the daily MAs are in their bullish formation with all three pointing up.  VIX closed below 40 last week.  This evening, Asian markets are pushing higher again!  Hang Seng (Hong Kong) is presently up +2.84% and Nikkei (Japan) is higher by +1.84%.  For the new week, if the market wants to go higher, I think we’ll need to see some…

To read the rest of of this article, please subscribe to HappyTrading “Premium Articles” by going to the Premium Services page.  If you are already a subscriber, please click here: Market Forecast 4/6/09.