Saturday, April 30, 2011

Market Read for Week 050211-050911

 This week's theme "Climbing the Wall of Worry".

Check last week's market read and the theme "Match in gas tank BOOM BOOM".

SPY- Officially broke out this week and ran into the vacuum. The measured move target out of the Inverse Head & Shoulders is around 138-139 and we're not that far from there.

Daily chart

Daily chart

QQQ- Tech's pennant/ slanted Inverse Head & Shoulders pattern complete now flagging out at 59 high still holding above 5 & 8EMA.

IWM- Supporting market's bullish risk on case as small caps continue to march upward in an up channel. 90 is still next target.

DX_F/Dollar- It's the dollar stupid and it's providing a mighty fine tailwind to equities. Looks like 72 is the next destination and then possibly 71.30. Looks like the only catalytic event that could get the dollar to change trends is a fundamental change in the Fed's easy money policy (QE) which should come to end in June but the markets so far seem unconvinced.

Weekly chart

Daily chart

CL_F/Crude- 115 on deck consolidating at upper Bollinger Band. Looks like crude inventory reports are confirming that Americans seem to be adjusting to higher gas prices just in time for summer season. Prices at the pump don't matter until they do.

Crude VIX- holding 30 neckline of the Head & Shoulders pattern, still not seeing fear protection buying with crude aiming for 115 & then 120.

HG_F/Copper- Copper seems to have lost it's leading market indicator status.

GC_F/Gold- Parabolic

SI_F/Silver-Finding sellers at 50 and dip buyers at 45.

VIX- Lost 15 support still in a down channel.

McClellan Oscillator- Getting close to overbought levels. Just another brick in the wall.

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