Last weekend, I forecasted:
"For the new week, it will be about the earnings. If the earnings are strong and confirm the strength in the economic recovery, the market can continue to rally. Otherwise, the market could turn down to test the recent lows again. On Monday, we’ll hear from AA and CSX after the market. On Tuesday, INTC and YUM will report. Thursday brings JPM in the morning and GOOG in the afternoon. On Friday, C, BAC, and GE wil present their quarterly reports."
It was indeed all about the earnings. On Monday, the market was hesitanct ahead of earnings from AA and CSX. After the market, both AA and CSX gave solid reports. On Tuesday, the market rallied. INTC delivered its best quarter in a decade! On Wednesday, the market traded flat, waiting for the numbers from JPM and GOOG. We locked in some superb profits on ISRG! JPM delivered a good quarter on Thursday morning, and the market closed higher on BP capping the well and GS getting a favorable settlement with SEC. However, after the market GOOG missed its earnings estimates. On Friday, both BAC and C reported disappointing results. The market was on the defensive right from open and sank lower until the close.
For the week, the Dow was down 100.13 points; SPX fell 13.08 points; Nasdaq slipped 17.4 points. Oil traded flat, but, gold sank below $1200/ounce. At the time of this writing, Asian markets were mostly down, following the performance of the US market on Friday…
SPX
On Friday, SPX dropped 31.6 points to close at 1064.88. It closed just below its daily MAs. The MACD flattened.
Nasdaq
Nasdaq fell 70.03 points to close at 2179.05. It closed right at its 10-day MA. Its MACD fell flat.
The market rose higher to test SPX 1100, but, ended losing all of last week’s gain on Friday. VIX rose briefly above 28 before closing at 26.25. For the new week…
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