The market went through another volatile week last week, ending with a bounce on Friday that allowed the Dow to record a win for the week. Oil actually went lower for the week (although we might not have felt the easing at the gas pump yet), and, news came out this weekend that Saudi Arabia was preparing to increase its oil production. Agriculture shares have been very strong and coal plays have also been making new all-time highs.

Let’s take a closer look at the market indices and various sectors:
SPX

SPX added +20.16 points to close at 1360.03. It managed to hold above the 1360 support, but the daily MAs slid. The MACD, however, went higher.

Nasdaq

Nasdaq jumped +50.15 points to close at 2454.5. Its 20-day MA coincided with 30-day MA. The MACD flattened.

For the new week, we have LEH reporting earnings on Monday and GS reporting on Tuesday. LEH seemed to have let the bad news out last week, as its shares popped back up on Friday. I think these earnings reports could be very influential to the market’s mood in the new week. The market certainly needs to see the financial sector stabilize. Also, if the crude oil continues to decline, it could help the market to gain confidence. The market’s powerful jump on Friday showed that the buyers are standing by and ready to play. It is also going to be options expiration week, so, volatility and manipulations are likely givens. VIX fell 9% on Friday to close just above 21. We’ll see how it handles 21 on Monday. If it shows room to fall more early in the week, the market may be playing the expiration to kill the values in the puts. Overall, I’m still taking the cautious stance, but, am a little more optimistic than last weekend.