Last weekend, in my Market Forecast, I said,

"For the new week, we should see the downward momentum persist for another couple of days.  Things may be volatile and we could see some mid-day swings.  On the downside, SPX 1260 is the next support, while 2700 sees support for Nasdaq.  If the market bounces, SPX has resistance between 1300 to 1320."

We did see a bit of downside follow-through on Monday.  But, the market bounced in the afternoon.  The market continued its bounce on Tuesday, as we locked in profits.  Stocks popped on Wednesday on positive news from Europe and continued on Thursday with China cutting its rates.  We took more gains off the table.  Thursday afternoon saw some weakness.  The quick drop, though, did not last past Friday morning, and the market closed the week on an uptick!  We wrapped up a very nice week with gains in most of our trades.

For the week, the Dow was up +435.63 points; SPX added +47.62 points; Nasdaq gained +110.94 points.  Gold fell and oil rose slightly.  At the time of this writing, Asian markets were mostly up.  Here’s how the US market looked after Friday’s close:

SPX

SPX added +10.67 points to close at 1325.66.  Its 10-day MA flattened and the MACD went higher.

Nasdaq

Nasdaq gained +27.4 points to close at 2858.42.  It closed above its 20-day MA and the MACD went up.

Both SPX and Nasdaq closed above their respective 20-day MAs.  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 6/10/12.