The market took a sharp fall on Friday, after GOOG’s earnings further pressured the selling in techs. In my Market Forecast last weekend, I said,
"For the new week, a bulk of earnings will come in… The market tone has turned bearish after the first week of earnings. If the downward momentum picks up, the market could test SPX 1400. Earnings of financials and big techs will be very crucial. Retails and housing data are coming in on Monday and Wednesday, respectively."
Well, from Monday through Wednesday, retails and housing data were better than expected. The market bounced higher. But, on Thursday, GOOG’s earnings were "supposedly", accidentally released early, and the market slipped again. Selling picked up late Friday morning and the market suffered its biggest one-day loss in months!
We had some nice trades last week with longside trades earlier in the week and quick downside trades on Friday. We’ve raised cash since Wednesday and are now mostly in cash.
For the week, the Dow was up +14.66 points; SPX added +4.6 points; Nasdaq fell 38.59 points. Gold fell to below $1730/ounce, while oil held just above $90/barrel. Asian markets were mixed at the time of this writing, with Hong Kong hovering around the flatline, slightly positive. Here’s where the US markets stood after Friday’s close:
On Friday, SPX fell 24.15 points to close at 1433.19. Its daily MAs and MACD turned down.
Nasdaq tumbled 67.24 points to close at 3005.62. Its daily MAs and MACD went lower.
Both SPX and Nasdaq sank below their respective daily MAs. VIX rose to 17. For the new week…
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