Happy Martin Luther King Day!
Last weekend, in my Makret Forecast, I wrote:
"For the new week, the market may still need a couple of more days to consolidate. But, the market does appear to be on the verge of break higher. Above 1280, SPX could quickly run above 1300. Nasdaq could see a burst to test 2750 on a breakout."
The market basically had a "repeat" performance as the first week of the year, meaning a day of gapping up; then, going nowhere for the rest of the week! On Tuesday, the market had a sizable jump, with SPX closing above 1290. As the market ran up, we captured some nice trades with intraday doubles! The market treaded water on Wednesday and Thursday, mostly weak in the morning and stronger in the afternoon. Friday morning brought on a quick selloff, dropping below 1280 on SPX. But, the market managed to climb back up and close near 1290.
We had a pretty good week once again. Here are the closed trades:
For the week, the Dow was up +62.14 points; SPX added +11.28 points; Nasdaq gained +36.45 points. Oil fell back just below $100/barrel, while gold bounced up to trade closer to $1650/ounce. Monday was a holiday to honor Martin Luther King, Jr. This evening at the time of this writing, Asian markets were mostly higher. Let’s see where the US market closed on Friday:
On Friday, SPX fell 6.41 points to close at 1289.09. Its daily MAs and MACD were little changed.
Nasdaq dropped 14.03 points to close at 2710.67. Its daily MAs went up, but, the MACD was flat.
Well, the market did break higher, but was hesitant to continue the rally. On Friday, after the market, S&P downgraded euro zone sovereign rating, which was already anticipated by the market. Global markets slipped on Monday, as the US was on holiday. For the new week…
To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page. If you are already a subscriber, please click here: Market Forecast 1/16/12.