Last weekend, in my Market Forecast, I wrote:
"For the new week, if the indices fall below the daily MAs, we might see some more weakness. SPX has support at 1430, then 1420. Nasdaq has support at 3100, the 3075. There should be buyers looking to come in at the support levels. Major sectors are showing some softness. We’ll have to see hold well they hold up. On the stronger side are the biotechs."
On Monday and Tuesday, the market was undecided and traded just below 1440. Wednesday saw some buying and biotechs continued to move higher. Market rallied higher cautiously on Thursday ahead of the unemployment report. On Friday, the unemployment rate unexpectedly dropped and prompted some early buying. SPX tested 1470, but, could not hold the gain. By the close, the market closed flat. Nasdaq was weak, dragged lower by AAPL.
For the week, the Dow was up +173.02 points; SPX added +20.26 points; Nasdaq climbed +19.96 points. Oil fell to below $90/barrel, while gold made a slight gain, but, still could not break $1800. At the time of this writing, Asian markets were mostly lower. Let’s see where the US market closed on Friday:
On Friday, SPX slipped 0.47 point to close at 1460.93. It stayed above its daily MAs, but, the 10-day MA was weak. The MACD glided up.
Nasdaq fell 13.27 points to close at 3136.19. It closed below its 20-day MA and the 10-day MA went lower. The MACD slid.
SPX tried, but did not break out on Friday. Nasdaq showed weakness as it dropped below its 20-day MA. However, VIX was also weak, closing barely above 14. For the next week…
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