Market Summary

Tops in markets tend to be rounded because of investor psychology. Both tops and bottoms represent investor sentiment and tops grow and are maintained by HOPE while bottoms display the crowd at the exit fleeing due to FEAR. The bi-polar swing between hope(or complacence) and fear is what makes up the periodic waves we see. Bottoms tend to be sharp because the desire to give up fear is so strong. Tops tend to be rounded because the desire to keep hope is so strong. Every bear market starts as a correction. We have the beginning of a correction on the very short term time frame however we are well above the 20 period moving average on the daily chart and the weekly chart is showing it made a higher high and higher low than the previous week. Click on image to enlarge.


China continues to be the bullish leader this past week with the FXI up 2.76%, the most for the markets covered here. Click on table to enlarge.