Last weekend, in my Market Forecast, I wrote,
"For the new week, the market may get an early test on the resistance levels again (SPX 1410 and Nasdaq 3100). Then, the market may struggle a bit to keep above those levels. On the down side, SPX has support between 1390 and 1400; for Nasdaq, support is 3075. If techs and financials remain strong, we may see the market get a new leg up by the end of the week. Energy stocks seem to remain weak."
Well, by now, it should come as no surprise that my market forecast was right on again. The market did get another "early test" on the resistance levels. On Monday, SPX charged higher to above 1420 and Nasdaq topped 3100. Financials and techs led the market higher. We scored some nice trades and locked in the profits. But, by Tuesday afternoon, financials had turned weak, and the market turned lower. Energy stocks were among the weakest. On Wednesday, the market took a quick drop in the morning before stabilizing between 1390 and 1400. Techs made an attempt to bounce a bit on Thursday, but, the financials remained weak. Friday was Good Friday and a market holiday. The market ended the week slightly lower, with SPX just below 1400 and Nasdaq just above 3075.
For the week, the Dow was down 151.9 points; SPX fell 10.39 points; and Nasdaq slid 11.07 points. Gold fell below $1640/ounce and oil was flat. This evening, at the time of this writing, the Asian markets were mostly lower. Here’s how the US market looked after last week,
On Thursday, SPX slipped 0.88 point to close at 1398.08. It closed just below 1400 and below its 20-day MA. The MACD was lower.
Nasdaq added +12.41 points to close at 3080.5. It closed below its 10-day MA. The MACD went down.
The market has been struggling against the same resistance levels for a couple of weeks now. The Dow has been the weakest among the market indices, closing just below its daily MAs last week. For the new week…
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