Last weekend, in my Market Forecast, I wrote:
"For the new week, we could still see some weakness to start the week. But, this market could be ready for a more solid bounce to iron in a bottom at SPX 1300 and Nasdaq 2775. GDP and unemployment reports are due this week and could help to provide the market with some rallying fuel. Most sectors are showing similar developments, trying to draw their respective bottoms. This could signal a place for a broadbased rally."
Well, right away on Tuesday, we saw the market bounced strongly. However, on Wednesday, the market gave it all back. In Wednesday night’s article, I said, "It looks like this market needs to test SPX 1300 again." On Thursday, the market went down to test SPX 1300, but, bounced again to close near 1310. After that, it was all up to the latest jobs report on Friday. Then on Friday, the unemployment rate rose slightly as fewer jobs were created. The market took the news hard and slumped 2.5% and Nasdaq was down 2.82%!
For the week, the Dow was down 336.26 points; SPX dropped 39.78 points; Nasdaq fell 90.05 points. Oil dropped down to $83/barrel while gold popped on Friday to about $1620/ounce. At the time of this writing, Asian markets were down big, following the slump in the US on Friday. Let’s see how the US market looks after Friday’s close:
SPX
On Friday, SPX fell 32.29 points to close at 1278.04. Its daily MAs and MACD went lower.
Nasdaq
Nasdaq tumbled 79.86 points to close at 2747.48. Its daily MAs and MACD also dropped.
Both SPX and Nasdaq dropped below the recent low. VIX rose above 26. For the new week…
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