Market Summary

The markets had a good week showing green across the screen, except for gold and oil which came slightly off their highs. The big winners were the RUT, the Russell 2000 small cap index, up 7.22% and the EEM, the Emerging Markets iShares ETF, up 7.11%. We have come up off the March 6 lows by more than 20% and are therefore technically in a bull market. Is it just a bear market rally or the real thing? Click on table to enlarge.
The Sector graph shows the Basic Materials continue to be in the lead in the race to positive territory with Technology not far behind. Comparing this graph with last weeks shows how the sectors are performing in this rally. Click on graph to enlarge

While I have been calling the current move up a 4th wave on the hourly chart the Elliott wave count on the S&P 500 looks like a bullish wave 1. If that is the case then we have completed the longer term 5th wave count to the downside on the daily chart and should see a wave 2 pullback on the hourly chart. Bull markets have strong up legs and weak down legs so any pull can be seen as a buying opportunity. Because the retracement of the 3rd wave on the hourly to the downside was more than the fibonacci 61.8% it makes it more likely we have begun a new wave count to the upside. We will just have to wait and see.