ROBIN CONTINUES TO CALL THE MARKETS!! HERE IS THE FORECAST FROM LAST WEEKS’ BLOG PUBLISHED ON SATURDAY 1/10/2009.
“The INDU closed Friday right on its’ lower trendline. The bearish move of this past week could begin to falter at this level, however, the index is more likely to continue its’ retracement to retest recent lows at 8348.”
“The same as in the INDU, the SPX resides right on its’ lower trendline. The index may cease its’ bearish move at this level. If it breaks this area of support the next target will be the recent lows of 845-850.”
WHAT HAPPENED? THE MARKET CLOSED AT 8212 ON THURSDAY 1/15 AND ROBIN PUT OUT A TRADE ALERT INDICATING A BULLISH MOVE (SEE TRADE ALERT FROM 1/15 ON THE BLOG) CALLING FOR A RETEST OF THE RECENT SWING LOW AT 8347-8372. ON FRIDAY 1/16, THE MARKET CLOSED HIGHER AND RETESTED AT 8341.
THE SPX CLOSED AT 844 ON THURSDAY 1/15 AND 850 ON FRIDAY 1/16.
Earnings season began Monday with AA after hours. AA received a downgrade and Citi had a bad day on negative news from the Wall Street Journal. The DOW slipped 125 points.
Tuesday, AAs poor quarterly results after hours Monday and Bernanke’s less than positive comments regarding the recovery and Obama’s stimulus plan contributed to the continuing market slide. The DOW closed down 25 points.
The DOW dropped 248 points on Wednesday led by the financial sector and specifically Citi. Some questions arose concerning Cs merger of their brokerage business (Smith Barney) and the prudence of the deal with Morgan Stanley.
Thursday closed significantly off its’ lows after initially absorbing AAPL’s news on Steve Jobs’ health issues. JPM beat the street and BAC was lower as the DOW closed just into the green by 12 points.
Friday, the market gapped higher on the open, only to trade down and test lows at 8109 before steadily climbing back to positive territory finishing the day up by 61 points on the DOW.
Week over week, it was another poor showing in the markets with the DOW off 318 points, the SPX down 40 and the compq worse by 42.