Last weekend, in my Market Forecast, I wrote:
"For the new week, the passage of the historic health bill may inspire more profit-taking, as now, there are more uncertainties. Besides what affect the new health legislation will have on the health care and insurance industry, some analysts are also paying more attention to the on-going discussions on financial regulations. We could see the market pullback to test SPX 1150 early in the week. If SPX 1150 does not hold, there’s support between 1130 and 1140. If SPX snaps back above SPX 1150 after a quick pullback, we could see the market higher by the week’s end. On the other hand, if the market breaks below SPX 1130, it could be looking at a bigger fall."
Well, the market stayed strong. On Monday, the market opened down and came close to SPX 1150; but, it snapped right back up and managed to close higher. Casino stocks were very strong and we caught a nice intraday trade on WYNN. On Tuesday, the commodity stocks came roaring up and helped to push the market higher. On Wednesday, the dollar jumped on weak Euro and the commodity stocks suffered, keeping the market in the red. On Thurday, the market popped in the morning on better-than-expected jobs data. We locked in more profits on our trades, and the market saw profit taking in the afternoon. Friday ended flat and we ended a nice week!
For the week, the Dow was up +108.38 points; SPX added +6.69 points; Nasdaq gained +20.72 points. Techs were very strong. On the other hand, energy stocks were particularly weak, as natural gas slumped to a new low. Gold actually kept its ground and oil fell slightly. This evening, at the time of this writing, Asian markets were mostly higher, with the Chinese market up about +2%! Comparatively, Asian markets have been actually muted so far in March, as the US market marched up to new heights! So, the Asian markets could have some distance to go. Here are how things look after Friday’s close:
SPX
On Friday, SPX added +0.86 points to close at 1166.59. It closed below the 1170 level. The MACD slid.
Nasdaq
Nasdaq fell 2.28 points to close at 2395.13, under the 2400 level. Its MACD was also down slightly.
Although the market indices did push higher, both SPX and Nasdaq ended the week just below their key levels: SPX 1170 and Nasdaq 2400. VIX was still kept under 18, though. For the new week…
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