Last weekend, in my Market Forecast, I wrote:
"For the new week, the market will likely have a slow start on Monday. Since Friday’s pullback was sharp, the market may be mixed on Monday, waiting to hear from AA’s earnings after market. The market will wrap up with WFC and JPM’s earnings on Friday. We’ll need to see how the market responds to AA’s earnings on Tuesday. Things do still look bullish, though. Going above 1360 again, the market continue to rally to test 1380. Friday’s earnings from the banks will need to give the market reasons to push higher. On the downside, 1340 is a support."
Things pretty much went as forecasted. Monday was a slow market, not much movement. Tuesday morning brought a little buying, but it quickly fade into more selling, as more profit warnings hit the wire. Market continued to sink on Wednesday, but held 1340 at the close. A quick drop to 1330 invited buyers to return on Thursday morning, as the market waited for earnings from JPM and WFC. On Friday, both JPM and WFC reported better than expected, and the market was off and running, closing a few points under 1360.
For the week, the Dow was up +4.62 points; SPX added +2.1 points; Nasdaq slipped 29.33 points. Gold was little changed and oil was a little higher at around $87/barrel. At the time of this writing, Asian markets were mixed and little changed. Here’s how the US market looked after Friday’s close:
On Friday, SPX added +22.02 points to close at 1356.78. it closed above its daily MAs. The MACD went up.
Nasdaq gained +42.28 points to close at 2908.47. Its daily MAs and MACD went higher.
Both SPX and Nasdaq got a good jump on Friday, with SPX coming up to test 1360 again. VIX sank below 17. For the new week…
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