Markets tumbled last week, ending with heavy selling on Friday! For the week, the Dow was down 677.96 points ; SPX dropped 73.04 points; Nasdaq lost 127.16 points. Oil continued to fall, closing below $57/barrel; gold got a big pop, ending above $1222/ounce.
Here's how the US markets looked after Friday's close:
SPX
On Friday, SPX fell 33 points to close at 2002.33. Its MACD and 10-day MA curved lower.
Nasdaq
Nasdaq lost 54.57 points to close at 4653.6. Its 10-day MA and MACD also went down.
SPX has quickly stumbled down to test 2000! Nasdaq is doing a little better, but, is pushing on its lower BB. For the new week, both SPX and Nasdaq look vulnerable. SPX 2000-1970 is an important support. Nasdaq has support at 4600. We might see some bounces to start the week. But, the bounces will be sporadic and selective. There will likely be continued selling in various sectors. Any bounce will not overturn the downward momentum unless SPX can rise above 2050. On Wednesday, the all-important Fed meeting will tell us how the Fed sees the US economy now. I think markets may be volatile and range-bound ahead of the meeting. Financials dropped quite a bit last week. Biotech and retail stocks are still hanging on.
Sector Watch
FAS (financial)
FAS closed below its daily MAs. The Fed meeting on Wednesday could give these stocks another jolt! But, in which direction, we will have to wait and see. If this sector bounces, I would focus on the regional banks such as STI and PNC. V and MA are finally showing weakness. The big banks (GS, WFC, JPM, BAC) all closed below their respective daily MAs.
FDN (internet)
FDN's daily chart looks pretty dire. It has turned bearish. However, we could see a bounce ...
