Markets top off a great week as volume subsides

For the week, the most dogged group according to CNBC et al was the resiliency of the S&P 600. Finishing the week up 3% was followed by NASDAQ finishing 2.5% and the S&P 500 up 1.2%. Volume slid from the prior week suggesting the bears will have some confidence going into this week. Bears will be hanging on the one distribution day suffered by the market, makes 2 distribution days in the past 4 weeks. Summing the past week, we are still in a confirmed rally and we still have buying opportunities.

Friday’s Markets:

NASDAQ +.47%

S&P 500 +.20%

S&P 400 +.46%

S&P 600 +.60%

Russell 2k +.73%

For the week:

S&P 600:

This past week marked the S&P 600 breaking through its most recent downtrend line. The next level I am looking for this index to break is 389 to confirm the short-term uptrend and retaking its 200dma @ 388. It will be important we break the 389 level with volume.

NASDAQ:

We’ll be looking for the NASDAQ to take out its April ‘06 highs, I’m looking for it to break 2370 with of course, volume!

S&P 500:

We are at 5 year highs, setting our sights for 6 year and all time highs. Look for the index to hold above 1350 to keep the recent uptrend intact.

General:

The market has only suffered 2 distribution days in the past 4 weeks, we’ll need 2 days of distribution to get me concerned. I am looking for the bears to try to take over the market this week. If we gap down tomorrow morning, do NOT panic. We’ll wait to see how we finish on the day. When markets to gap down, we look for them to recover and close on the highs for the day.

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Stay calm, enjoy!

MktSpec