Happy Thanksgiving week!
Last weekend, in my Market Forecast, we discussed,
"For the new week, we may start to see some bounces. SPX now has resistance between 1400 and 1420. Markets now may be more "news-driven" than usual as the recent pullback have rendered stocks range-bound for the near term. If the markets do bounce, we’ll likely see a stock-picking environment. Financials broke down last week as industrials and techs fell lower. On the downside, the support between 1360 and 1380 will be very important."
Well, the market was indeed driven by news last week. The overall tone remained negative as investors carefully monitored the progress on getting a budget deal from Congress. Things were range-bound on Monday and Tuesday, but took a nosedive on Wednesday after not receiving new insights from Obama’s media conference. Stocks continued to slide lower until late morning on Friday when Congressional leaders came out and gave markets a glimmer of hope that a bi-partisan deal could be done. SPX ended the week just shy of 1360.
For the week, the Dow was down 277.08 points; SPX lost 19.97 points; Nasdaq fell 51.74 points. Gold slid below $1720/ounce and oil was flat, holding at around $87/barrel. At the time of this writing, Asian markets were mostly positive, but, China was still weak. Here are where the US markets closed on Friday:
On Friday, SPX added +6.55 points to close at 1359.88, just shy of 1360. The daily MAs and MACD slid.
Nasdaq gained +16.19 points to close at 2853.13. The daily MAs and MACD were down.
Both SPX and Nasdaq fell below their respective support levels during the week and barely bounced back on Friday, after encouraging comments from Congress. Surprisingly, VIX took a sharp fall last week, closing at 16.41. For the new week…
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