Market Summary

I have taken the liberty to draw two pink ovals on the chart below showing the two gaps that occurred last week. They formed an Island Top which I have highlighted in blue and is a technical sign of exhaustion in the market. The first gap was a gap open higher last Monday morning after the European Union et al announced "Le TARP", the european version of TARP to stimulate their economies and support the euro. By the last half of Thursday selling pressure increased and a gap open lower on Friday, marked by the second pink oval, completed the Island Top formation. Sentiment is bearish on the short and intermediate term but bearly holding on to bullish for the long term. It appears the market is heading lower and will have to look to support levels to find a bottom. Click on image to enlarge.

For the YTD period the US Dollar is up the most followed by gold represented by the GLD and the small cap index is close in third place. The losers are UNG, USO, EFA, and FXI. For the week, all the indexes were up except USO due to the large gap open higher on Monday. Click on table to enlarge.