Happy Labor Day!
The market went through another week of tightly ranged sideways trading. No commitment was made on either side of the trade before Bernanke’s speech on Friday. Even after Bernanke had delivered his speech, the market was indecisive, at least at first.
Last weekend, in my Market Forecast, I wrote:
"For the new week, we might see some mixed trading to start the week. It’s gong to be a very important week and it could decide whether the market goes into a super rally! The resistance to break is still 1420 on the SPX. If the market slips lower, which is a more unlikely event, the support is still between 1400 and 1390."
We did indeed see a mixed market from Monday through Wednesday with SPX hovering around 1410. The market sank lower on Thursday ahead of Bernanke’s speech, but, buyers came in just below 1400. Friday morning reversed that quick little slip. Although the market slipped again immediately after Bernanke’s speech, it ended with modest gains on Friday.
We didn’t trade much last week, but, did make some good trades, including a +130% gain on PCLN calls.
For the week, the Dow was down 67.13 points; SPX slipped 4.55 points; Nasdaq lost just 2.83 points. Oil was flat while gold pushed up to above $1690/ounce. At the time of this writing, Asian markets were little changed. Here’s where the US market stood after Friday’s close:
On Friday, SPX added +7.1 points to close at 1406.58. The daily MAs were little changed while the MACD slid.
Nasdaq gained +18.25 points to close at 3066.97. The daily MAs and MACD were flat.
Both SPX and Nasdaq closed above their support levels. But, VIX rose above its daily MAs. For the new week…
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