Market Summary

As can be seen from the table below all markets are in the green when viewing the one week column. In fact, I have heard that this was the best one week gain since 1932. What does all this mean? We are and have been in a bear market which according to my analysis began at the end of 2007. Except for gold, which is showing nearly flat for the past 12 months, all markets are down significantly. This up week then could be called a bear market rally. Bear market rallies generally retrace a certain percent of the recent down move before turning south and retesting the lows. This can be an opportunity to get out of the market before it continues lower. What is interesting here is that the lows which we just recently hit were multi-year lows and if we break those lows on a retest the drop is significantly lower and would indicate an economic depression. Will that happen? We will just have to wait and see.

When sorting the gainers on the table below by the 1W column it is seen that the EEM (Emerging Markets ETF) made the biggest gain up 25.68%. However, on a YTD basis it is still down over 50% and is the most down except for the gasoline ETF and has the greatest percentage to make up to get back to even. The next best gainer over the past week is Russell 2000 ETF which is a measure of the risk appetite in the market. This bullish move on the part of the Russell 2000 is bullish for all markets in general as it shows the sentiment to take on risk in the markets. Finally, the SPY made 3rd place on % Change for the 1W column indicating participation of the broader market in this rally off the recent lows. Click on table to enlarge.



Finally, I want to keep a watch on the three best gainer for the past week as if the market turns these may be the ones to watch as they have been the fastest to move up. Below is the 240 min. 20 day chart of EEM, IWM, and SPY. Lets watch these as the ones to move up the fastest may also lead to the downside. I also want to follow the GLD chart and include that one as well. Click on charts to enlarge.

Emerging Market EEM ETF

Russell 2000 IWM ETF

S&P500 SPY ETF

Gold GLD ETF