Market Summary

It was a good week in the markets with all the markets being in the green. Oil was up the most and the Dow was up the least. For the year, gas is up the most followed by gold while the Russell 2000 small cap index is down the most. We are seeing some green columns being put in on the table below, mostly in the middle of the table. The far right of the table is the long term trend and the far left is the short term trend. As green columns move to the right we can say the market has come off the bottom. Click on table to enlarge.
The sector graph below shows a decline in the red compared to last week most notably in the Basic Materials to the Financials area while the Conglomerates actually showed a slightly worse performance. Click on graph to enlarge.
What is most remarkable is the wave count of the S&P 500 shown below. Since the beginning of the year we have been in a 5th wave decline on a daily time frame as shown by the tan line. This 5th wave is made up of a sub-wave fractal pattern shown with blue arrows on the hourly time frame chart below. While this is my subjective interpretation I believe the next turn up in the markets will be explosive to the upside and crash through the 50 day moving average shown in red. Indeed we have seen a 20% rally to the upside in the S&P 500 just in the last two weeks as we came off that 3rd wave low on the hourly chart at 666.79 to the recent 803 high we made on Wednesday. How far down this last wave we will go is uncertain as I am less inclined to believe we will take out the recent 666.79 low and therefore view this pull back as a buying opportunity. We will just have to wait and see. Click on chart to enlarge.