Oil prices resumed their upward trend and energy stocks appear to be breaking out

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

• The S&P 500 enjoyed the 4th consecutive up week rising 3.25%.
• We did, however, close at resistance of the 13 week MA at 842. We are also closed just slightly above the 100 day MA another resistance point.
• If the resistance points are correct then this week could see a pull back.
• Key support zone is at800 and below 775 we could start a… [read more...]

TSX INDICES

We are now four weeks up from the low seen on March 6. Gains to date have been 19.5% off the low close. The November/January rebound was one of 22.6% so we are getting close to equaling that one. We note though this time around the lows were only marginally below the November lows setting up the possibility of a double bottom pattern. We have broken through what may be neckline; however, we note that it has not been with any … [ read more... ]

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• The rebound rally continues although we are at a resistance zone that could see a temporary setback.
• Gold reacted negatively to the announcement of IMF gold sales but we note that only gold and silver fell of the metals and other commodities this past week. Platinum and copper in particular rose on the week. The US Dollar fell sharply on the week reversing the sharp up week of the prior week.
• Despite efforts from foreign purchases of US securities and quantitative easing US bonds fell sharply again this week.
• Unemployment keeps rising with another 600 thousand plus job loss in the US and unemployment jumping to 8.5%.
• Oil prices resumed their upward trend and energy stocks appear to be breaking out.

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