Happy Father’s Day!
The big news today is of course from Greece. The election results are out and the conservative New Democracy party came away with a slim victory. Now, the pro-bailout parties can work to form a joint government. This seems to have calm the worries from the global financial markets, as Asian markets jumped this evening.
Last weekend, in my Market Forecast, we discussed:
"For the new week, the $100 billion Euros aid deal for Spain should give the financial markets a boost on Monday. First resistance is SPX 1340. If the market moves above 1340, 1360 could be tested. We could see some quick profit-taking in mid-week. Then, we’ll have to see how the market closes out the week. Financials could get a nice bounce on the Spain aid news. Energy stocks could be drawing a bottom. Software finally succumbed to the selling pressure in May, and could turn bullish again."
The market did pop on Monday was limited, as profit-taking started almost immediately. We logged in our profits in the morning. The market spent Tuesday and Wednesday in a narrow range without a clear direction. On Thursday, the market rallied in the last hour as central banks around the world collectively promise to provide necessary support ahead of the Greek elections. Friday ended with surprising strength on the market, and, we logged in another strong week.
For the week, the Dow was up +212.97 points; SPX added +17.18 points; Nasdaq gained +14.38 points. Oil was slightly lower while gold was slightly up. Here’s where the US market closed on Friday:
SPX added +13.74 points to close at 1342.84. The 10-day MA turned up and the MACD continued higher.
Nasdaq gained +36.57 points to close at 2872.8. Its 10-day MA also turned up and the MACD climbed.
Both SPX and Nasdaq closed above their respective daily MAs. For the new week…
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