Market Summary

This last week started bullish and ended bearish. Monday and Tuesday were good days in the market giving rise to a pop up higher on Wednesday which looked like a breakout to the upside. That all changed on Thursday with a steep sell off to the downside which continued on Friday. This type of market is what is known as a bull trap. The market rallies and sucks people in and then takes it all away. Part of the reason for the rally was in the financial sector which shot way up on talk about the creation of an Aggregator bank or so called “Bad Bank” to take off bad assets from the banks. I think we will hear more about this and it has the ability to move the markets.

The table below shows the UGA, the US Gasoline Fund ETF, was up 7.78% for the week followed by GLD, the gold ETF, up 2.02%. The worst performer was USO, the US Oil ETF, down 9.59%. The trend as I see it in the markets is to the downside. If we break last weeks low the next support is around the 800 area on the S&P 500. We will just have to wait and see. Click on table to enlarge.