Market Summary

It was a wonderful week in the markets. We made a low the prior week on Friday at 666.79 and all week long this last week we saw the march higher. The biggest gainer for the week was the Russell 2000 small cap index, the riskiest of the indexes, indicating that risk appetite is back. The biggest loser for the week was the USO oil ETF followed by a sell off in GLD. While I mention the weekly performance above the table below ranks market performance by Year To Date column and clearly GLD has outperformed the other markets. However, as I mentioned on my last post, what was going up will go down and what was going down will go up. Click on table to enlarge.

There is a relationship between an uptick in the economy and the demand for copper. While it may be early it would appear the the copper ETF JJC has made a bottom and is moving to the upside. I will be including a sector performance graph in the market summaries as when trading being in the right sector makes all the difference and can cushion a bad pick of a stock or ETF. Here we see the Basic Materials sector has taken the lead from Technology. A link to the Basic Materials Sector Industry browser on Yahoo can be found here. Click on graph to enlarge.

Continuing from last week I am including an hourly chart of the S&P 500.
My wave count is that we are in the 5th wave down as shown by the Tan line. The blue lines represent my wave count based on the hourly chart and show a 4th wave as a sub-wave of the 5th wave. I believe we still need to complete a 5th wave as a sub-wave of the larger 5th wave to complete the cycle of 5 waves down. This would take us below the prior 666.79 low to somewhere near the 650 area for a final bottom. However, we will just have to wait and see. Click on chart to enlarge.