Last weekend, in my Market Forecast, I said,
"For the new week, market’s immediate resistance levels are SPX 1160 and Nasdaq 2400 to 2450. However, if the market gets all its legs running, ie. mining, energy, and financial sectors, we could see SPX test 1170 to 1180, especially if VIX breaks below 20! Techs should continue to be strong if the sentiment stays bullish. There are some important economic data coming in next week: Consumer Confidence on Tuesday, GDP, Chicago PMI and jobless claims on Thursday, and, more consumer data on Friday."
The market did come up to test the immediate resistance levels, but, only for a brief moment. On Monday, the market was volatile and ended down ahead of Tuesday’s consumer confidence report. We locked in on some nice profits on Monday morning. On Tuesday, the consumer confidence went lower and the market sank at open. However, the market managed to bounce back up and closed in the green. Gold shot up to close above $1300, a new record high. Wednesday brought more directionless trading as the market traverses up-and-down near the flatline. Thursday was a reverse of what happened on Tuesday, as the market popped up to test SPX 1160 in the morning after improved job data. But, investors locked in profits and drove the market slightly in the red for the close. On Friday, the market was again a bit volatile and ended a week of directionless trading. Nevertheless, September was a very strong month for the market and we pocketed some nice gains.
For the week, the Dow actually ended down 30.58 points; SPX slid 2.43 points; Nasdaq lost 10.47 points. Oil had a really strong week, closing above $81/barrel. Gold, as mentioned above, rose to a new record level at around $1317/ounce! At the time of this writing this evening, the Asian markets were mostly higher. Let’s take a look at the US market after Friday’s close:
On Friday, SPX added +5.04 points to close at 1146.24, above its 10-day MA. The MACD remained flat.
Nasdaq gained +2.13 points to close at 2370.75, staying above 2300. The MACD slid.
The market was not ready to push higher last week, nor was it ready to come down. We saw the market bounced on Tuesday after a quick pullback; on the other hand, we saw investors took profit on Thursday after the morning pop. VIX still managed to stay above 22. For the new week…
To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page. If you are already a subscriber, please click here: Market Forecast 10/4/10.