Last weekend, in my Market Forecast, I wrote:
"For the new week, things may be a bit tricky. First of all, it’s options expiration week, so some "maneuvers" are to be expected. The market is definitely trying to draw a bottom. But, after charging higher 2 days in a row, we may see some indecisiveness on Monday. If the market can hold its altitude on Monday, the market may test SPX 1100 to 1120 area."
Things happened pretty much as forecasted, again. Monday was indeed a "tricky" day. The market was strong in the morning, but, turned negative in the afternoon. But, the market did hold its altitude, down only fractionally. On Tuesday, the market jumped and rallied all the way to close at day high. We locked in some good intraday profits on GOOG calls. On Wednesday, the market churned, but, came close to that 1120 level. On Thursday, the market was slightly weak in the morning on profit-taking; it turned up in the last 30 minutes to close in the green. Bagger Vance scored some superb trades! Market stayed strong on Friday and finished a solid week, as we locked in some nice gains for the week as well.
For the week, the Dow was up +239.57 points; SPX added +25.91 points; Nasdaq gained +66.2 points. Both oil and gold went higher, with oil touching $78/barrel and gold closing above $1250/ounce, a new all-time high! At the time of this writing, Asian markets were mostly higher. Let’s see how the US market looks after Friday’s close:
SPX
On Friday, SPX added +1.47 points to close at 1117.51, just under the 1120 level. Its 10-day MA has risen above the 20-day MA. MACD went higher.
Nasdaq
Nasdaq gained +2.64 points to close at 2309.80, above the 2300 level. Its 10-day and 20-day MAs have turned up.
Both SPX and Nasdaq closed above their respective daily MAs. VIX dropped below 24. For the new week…
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