Market Summary

Stock options expire on the 3rd Saturday of the month so that the 3rd Friday of the month is usually very volitile. As can be seen in the image below there was a sell off Friday which may be the beginning of a correction to the downside. The 4th panel in the image below is the hourly chart which is my very short-term view of the market and can be seen with a pink background indicating a downtrend in that time frame. All other time frames continue to remain bullish. Click on image to enlarge.

It was a strong up week for oil (USO up 8.85%) and gas (UGA up 11.06%). Basic Materials, up 4.4% for the week, continues to be the sector in the lead with the $CRB (Commodity Research Bureau Index) breaking out to the upside indicating inflationary pressures on commodities. Gold made a new high this week on Wednessday at 1070.70. Click on table to enlarge.