The US$ appears vulnerable.

S&P 500 STRATEGY: STAND ASIDE (for definitions of terms see end of report)

• The S&P 500 put in a sharp reversal week up 10.7% for the biggest weekly jump since
  late November.
• There were numerous positive divergences at the lows especially on the weeklies where the MACD indicator did not really turn down again despite the new lows recently. This is a positive development if you want to be a bull .
• Support is now 740 and 720. Below 720 we will test the lows again.
• At 666 (hmmmm!) the S&P 500 fell just short of our target of 650.
• The Dow Jones Industrials (DJI) on the other hand hit down to 6440 in the vicinity of our
  6500 target. We also hit the bottom of our potential descending wedge triangle for the DJI.
• Resistance on the S&P 500 is seen at 770 but  … [ read more ].

TSX INDICES

A week after making new lows the markets rebounded sharply this past week. Every sector was up on the week except for the TSX Gold Index and it was unchanged. Leading the 9.4% gain for the TSX Composite was the TSX Financials who were up a sharp 19% on the week. Many of the maligned banks were giving buy signals. So is this it? The bottom is in? well actually we don’t think so but we are making some noise for at least a temporary  … [ read more ]

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• Big reversal week. Is the intermediate bottom in?
• Too soon to tell but this week might at least resolve it as we are near a breakout on a number of downtrend lines.
• We have major positive divergences at the lows.
• The US$ appears vulnerable.
• Oil prices rising again and the energy stocks look positive.

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