Last weekend, in my Market Forecast, I wrote:
"For the new week, this week is still range-bound with a bearish bias. The longer the market hangs below SPX 1080, the more likely we’ll see SPX test 1040 soon again. However, if the market rises above 1100, we’ll likely see a new bullish formation in SPX’s daily MAs. In order for that to happen, we’ll need to see some strong leaders on the market. Financials, especially, will need to be strong."
Indeed, the market tried to hang around 1080 on Monday, but, could not break above that level. On Tuesday, the market gave in to the selling pressure and went straight down to test 1040. On Wednesday, the market tried its best to stay above 1040, but, experienced more selling in the last hour to close below 1040. On Thursday, the selling momentum pressed the market lower in the morning and SPX touched 1010 before bouncing back a bit. On Friday, the market traded sideways and ended slightly down. With the fast selling in the past 2 weeks, the market ended June lower again. However, we traded with the market and caught some nice trades on both sides.
For the week, the Dow was down 457.33 points; SPX fell 54.18 points; Nasdaq stumbled 131.69 points. Gold took a big tumble this week coming back to the $1200 level. Oil also fell, sinking down to just above $71/barrel. Tonight, at the time of this writing, Asian markets were mostly bouncing higher. Here’s how the US market looks after Friday’s close:
SPX
SPX slid 4.79 points to close at 1022.58, below the 1025 level. The daily MAs and MACD continued lower.
Nasdaq
Nasdaq fell 9.57 points to close at 2091.79, below 2100. Its daily MAs and MACd also kept on slipping.
Both SPX and Nasdaq fell below their respective key support levels (SPX 1040; Nasdaq 2150). However, after rising above 37, VIX has come down to 30 again. For the new week…
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