Last weekend, in my Market Forecast, I wrote:
"For the new week, I think we might see some buyers chasing this market. Things might be a bit volatile. As I have said before, psychologically, 1820 on SPX is a barrier. Financials and techs both still look strong. If things push above SPX 1820, watch out!"
The broader market pushed higher. By Tuesday, SPX rose above 1820, and, things just kept on going higher. By the week’s end, SPX closed just above 1841.
We also had a pretty good week, with 100% of our closed trades on the "+" side:
For the week, the Dow was up +257.27 points; SPX added +23.08 points; Nasdaq gained +51.85 points. Gold rose slightly and oil climbed to just above $100/barrel. Here’s how the US markets closed last week:
On Friday, SPX slid 0.62 points to close at 1841.4. Its daily MAs and MACD went up.
Nasdaq fell 10.59 points to close at 4156.59. Its daily MAs and MACD were slightly up.
Both SPX and Nasdaq rallied higher last week. But, things maybe getting a bit toppy. VIX has sunken down to test 12, which has been a solid support. We might see some consolidation here, but, I think the rally can continue into 2014. A lot of sectors are still far from their highs! If you’re still standing on the sideline, there is still time to come in!
The Chinese markets (both China and Hong Kong) have been falling for a couple of weeks, in contrast to the world markets. Let’s see if they can start drawing a bottom. Gold seems to be also drawing a bottom at $1200/ounce.
I’ll be back on Sunday evening with the rest of the Market Forecast and Sector Watch. Please stay tuned!
Happy Weekend and HappyTrading! ™