Markets struggled last week. SPX did its best to hold above 1800 on Monday. But, it finally gave way to the selling pressure and close the week just below 1780.
Last weekend, in my Market Forecast, I wrote:
"For the new week, the market may need a few more days to consolidate. However, if the world markets respond positively to the approval of the Greek budget plan for 2014, we may see stocks run up for a new leg up. Oil is starting to rise again. Would it place unnecessary pressure on the global economy? Techs are really strong. I still think the possibility is there for stocks to go parabolically higher! A new leg up can bring SPX to first test 1820. On the downside, 1780 is now the support."
We took it easy last week. I didn’t think it was wise to chase stocks higher, and on the downside, things were falling fast. However, the VIX calls that we held on to did very well:
For the week, the Dow was down 264.84 points; SPX lost 29.77 points; Nasdaq fell 61.54 points. While gold bounced a bit to above $1230/ounce, oil fell slightly to $96.6/barrel. At the time of this writing, Asian markets were mostly lower. Here’s where the US markets stood after Friday’s close:
On Friday, SPX slid 0.18 points to close at 1775.32. The daily MAs and MACD went down.
Nasdaq was up +2.57 points to close at 4000.98. It closed just below its 20-day MA. The MACD was down.
SPX has already fallen below its daily MAs. Nasdaq is barely hanging above its 30-day MA. VIX popped close to 16. For the new week…
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