Happy Mother’s Day!
Last weekend, in my Market Forecast, I wrote:
"For the new week, the market is in a weak position. This pullback could get easily worse. First support is at SPX 1360. But, that will unlikely be the stop. Most sectors have turned bearish. Below 1360, SPX 1340 is the next support. Nasdaq looks the weakest among the major market indices. The Dow is actually holding up the best. Financials will once again be very important."
Things pretty much went as forecasted. On Monday, the market tried to hang on, but, quick succumbed to the selling on Tuesday morning. We took in some nice gains. On Wednesday, the market came down close to SPX 1340 then bounced. On Thursday, the market struggled to find a direction. In the evening, CSCO disappointed with its earnings forecast and JPM torpedoed the financials with an unexpected $2 billion trading loss. On Friday, the financials fell, but, the market held up considerably well, with SPX only losing 4.6 points and the Nasdaq holding flat.
For the week, the Dow was down 217.67 points; SPX shed 15.71 points; Nasdaq dropped 22.52 points. Gold and oil continued to fall lower, with gold trading at $1584/ounce and oil at $96/barrel. At the time of this writing, Asian markets were slightly up after China loosened up its monetary policy. Let’s see how the US market closed on Friday:
On Friday, SPX fell 4.6 points to close at 1353.39. The daily MAs and MACD turned down.
Nasdaq added +0.18 point to close at 2933.82. Its daily MAs and MACD were also lower.
Both SPX and Nasdaq closed below their respective support levels (SPX 1360; Nasdaq 2950)! VIX went above 20 during the week, but, closed just under. For the new week…
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