Market Summary

The weekly chart in the image below shows that we have made a lower low and a lower high than the week before but more importantly we made a low below the March 6 low and the candlestick is somewhat that of a hammer. The market held the 50-week moving average as noted by the red line. We also filled the gap noted in my last post and that is prerequisite to moving higher. However, sentiment remains bearish. Click on image to enlarge.

As I mentioned in a previous post I was looking to determine if we were moving into an 1) A-B-C consolidation correction pattern or a 2) 5 wave count to the downside. It appears that the answer to the wave 3 or wave C question was settled in favor of wave 3 and we have now moved into a wave 4 pattern implying that we should look for a 5th wave low. Wave 4s are often very volatile. While we could have put in a low last week and move up from here overhead resistance and institutional sellers are likely to at least test the recent lows. Click on chart to enlarge.

YTD the UUP is up the most followed by the GLD and $RUT while oil and natural gas are down the most. For the week, the commodity ETFs UNG, USO, UGA, and GLD were up the most. Click on table to enlarge.

What is interesting to note is the ETF FXI which reflects the Chinese economy and the Shanghai index. It appears to have put in a bottom and is moving higher in the short and intermediate term. Click on image to enlarge.

Finally, gold is clearly in the green and manages to continue moving higher as noted by the ETF GLD. Note the CCI(50) on the hourly chart at 96.14. Click on image to enlarge.