This past week we saw the market make a sorry attempt at a bounce on Monday and Tuesday then on Wednesday it dropped but came back fairly strong to close the day up. So we got three days of an attempted bounce but on Thursday the jobless claims report came out and that was enough to turn the market back down for the week.
The markets closed near their lows for the week and below their daily support levels. Support levels are often penetrated then quickly recovered on the following day. It is this back and fourth that gives us a clue as to the strength or weakness of the move. Once a key support level has been broken it is just a matter of time before it is broken again. The second time with a close across it is usually the safest opportunity to open new positions with the trend.
The SPX and the NASDAQ Composite did close on weekly support levels so there is a chance that they bounce on Monday especially since Mondays have proven to be bullish the past three months. However all moves up remain good selling opportunities.
The Nasdaq Composite Index
First support is at 2140, 2115and 2050. Resistance is at 2156, 2200, 2230 and 2264.
Standard and Poors SP-500 index
First support is at 1070, 1060 and 1040. Resistance is at 1085, 1090, 1100 and 1115.
The Dow Jones Industrial Averages Index
Support is at 10415, 10000 and 9930. Resistance is at 10160, 10240 and 10390.
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The KBW Bank Index
Support is at 45.35 and 44.80. Resistance is at 47.70 and 48.00.
GOLD - via the GLD
GLD Support is at 105, 104.80 and 100. Resistance is at 108, and 110.
OIL (light sweet crude)
Oil continued lower and is very oversold but as we often see it can always get more oversold. Fridays move down was very ugly so a continuation move down should be expected this week.
The US Dollar (Dollar Index ) The U.S. Dollar continued higher this past week, it is now at first resistance. Our first target for the US Dollar is 80.10 then 81.93. We expect the current up trend will last through the end of March. That does not mean we will not get corrections on the way there. Support is at 78.40, 78.00 and 77.60. Resistance is at 79.50 and 80.10.
This past week we saw the market make a sorry attempt at a bounce on Monday and Tuesday then on Wednesday it dropped but came back fairly strong to close the day up. So we got three days of an attempted bounce but on Thursday the jobless claims report came out and that was enough to turn the market back down for the week.
