Happy Memorial Day!
Last weekend, in my Market Forecats, I said,
"For the new week, this market could see a "relief rally" early in the week. But, a relief rally often doesn’t last. Therefore, depending on how high the market bounces, we may see another down draft later in the week, unless there are positive surprises out of Europe. First resistance levels are SPX 1320 and Nasdaq 2850."
Again, things happened as forecasted. Right away, on Monday, the market staged a bounce. The rally was powerful and drove SPX close to 1330 by Tuesday’s morning, as we locked in gains on some of our longside plays. But, the downside pressure soon kicked in, and by Wednesday morning, the market was testing SPX 1300 again! Thursday and Friday were spent in volatile trading with no real direction, and the market closed just below the resistance levels.
For the week, the Dow was up +85.45 points; SPX climbed +22.6 points; Nasdaq added +58.74 points. Both gold and oil were slightly down. At the time of this writing, Asian markets were mostly up. Here’s where the US market closed last Friday:
On Friday, SPX slid 2.86 points to close at 1317.82. It closed right at its 10-day MA. The MACD was flat.
Nasdaq slipped 1.85 points to close at 2837.3. It closed below its 10-day MA. The MACD was slightly up.
Both SPX and Nasdaq came up to test their respective resistance levels: SPX 1320 and Nasdaq 2850. Both closed just below. For the new week…
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