After a sharp drop on Monday morning, buyers came in. SPX went down to test 1560 and managed to bounce to 1620 on Thursday. As I said last weekend, in my weekly Market Forecast,
"For the new week, the market has turned bearish for the near-term. The daily MAs and both SPX and Nasdaq have developed new bearish formations. I think we’ll see some light bounces to start the week. Summer is here, and, big buyers may be hesitant to act right now. Although there is still a lot of cash sitting on the sidelines, the markets may need a bit more time to consolidate. SPX now has resistance between 1580-1620. On the down side, below 1580, the next support is at 1550."
The market tested its support and resistance levels all in the same week! But, the buying tapered out on Friday. We had a nice week, trading on both sides. 100% of our closed trades were in the profit. We cashed out our FAS calls a little too soon, but, still captured a +66% gain. GOOG calls were a quick trade for a +62% profit. MON puts yielded a +75% win. Here are the closed trades:
For the week, the Dow was up +110.2 points; SPX added +13.85 points; Nasdaq gained +47 points. Gold fell sharply to about $1235/ounce. Oil popped back up to $96.5/barrel. At the time of this writing, Asian markets were mixed, with China flat and Japan up, after being down earlier. Here’s where the US markets stood after Friday’s close:
On Friday, SPX fell 6.92 points to close at 1606.28. it closed just below its 10-day MA. Its MACD flattened.
Nasdaq added +1.38 points to close at 3403.25. It closed above its 10-day MA. The MACD turned up.
Both SPX and Nasdaq are testing their respective 10-day MAs. VIX pulled back to just below 17. For the new week…
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