It was a volatile week that gave the market’s worse weekly performance of the year! Last week, in my Market Forecast, I wrote:
"For the new week, the market is in a precarious position. If the market does not go and stay above 1400 early in the week, a test to 1390 would not be a bullish sign. On Friday, the jobs report showed less jobs created, although the jobless rate went down. We’ll have to see how the market reacts to this report. The resistance levels are still SPX 1410 and Nasdaq 3100. The immediate support is now SPX 1390 and Nasdaq 1350. But, a test to the support levels may spell trouble, as the Dow would be even worse."
Indeed, on Monday, the market sank below SPX 1390 within the first hour of trading and Nasdaq went below 1350. However, techs and financials held on, and the market did its best to hang on. But, on Tuesday, the financials broke down and the market tumbled! On Wednesday and Thursday, stocks fought their way back to Monday’s levels. Next morning, GOOG shares sold off after the company announced a strange way to split its stock and the financials slipped back down after JPM and WFC’s earnings, leaving the market to close on a weak note on Friday.
For the week, the Dow was down 158.55 points; SPX fell 27.82 points; Nasdaq stumbled 69.17 points. Oil was flat and gold went a bit higher. At the time of this writing, Asian markets were mostly down. Let’s see where the US market closed on Friday:
On Friday, SPX fell 17.31 points to close at 1370.26, just above 1370. The daily MAs and MACD went lower.
Nasdaq dropped 44.22 points to close at 3011.33, just above 3000. Its daily MAs and MACD also went down.
Both SPX and Nasdaq experienced solid drops last week, barely closing above important support levels. VIX rose higher, but, closed the week below 20. For the new week…
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