This market has been very "interesting", to say the least! With the market getting big swings, good trading opportunities have been on both sides. Last weekend, in my Market Forecast, I said:
"For the new week, the market is trying to draw a bottom. We could see buying continue to start the week. But, next week is expiration week for August options. So, we could see volatility pick up starting mid-week. If SPX rises above 1200, we could see 1260 tested, but, we’ll need some really good economic news, or something big to drive the market. Otherwise, 1220 to 1240 could present some resistance. Nasdaq could test 2650 in a strong market environment. If things come back down, we could easily test last week’s bottom again."
Things went along with the above forecast. Early in the week, buyers tried to push the market higher. On Tuesday, I cautioned readers to "atch those downside levels. Upside is having a hard time gaining momentum." We made more nice trades on the downside on Wednesday. Thursday brought us big profits as the market took a sharp drop. At the end of Thursday night’s article, I wrote, "Tomorrow will be volatile. If you’re trading, you can probably catch quick trades on both sides. I’d let the first hour go, though, if the market bounces." Friday happened exactly as I though it would. A bounce in the morning, but, it didn’t hold. By the end of Friday, the market is down to test the recent lows.
We had a really nice week. Cashing out on our longside trades early in the week and scoring big on the downside trades to finish the week!
For the week, the Dow was down 451.37 points; SPX fell 55.28 points; Nasdaq lost 166.14 points. Gold continued to climb higher, closing above $1850/ounce. Oil fell lower, nearing $82/barrel. At the time of this writing, Asian markets were mostly lower. Let’s see how the US market looks after Friday’s close:
On Friday, SPX fell 17.12 points to close at 1123.53, just above 1120. Daily MAs and MACD went lower.
Nasdaq dropped 38.59 points to close at 2341.84, below 2350. Its daily MAs and MACD also dropped.
Both SPX and Nasdaq are back to testing their respective support levels. VIX fell to the low 30s, then, popped above 40 on Thursday. But, will it continue to push higher, after this one-day pop? For the new week…
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