Market Summary

Climbing a wall of worry, that is what bull markets do. Bull markets are defined by the trend of the longer weekly and monthly time frames. A wall of worry is defined by the trend, or lack of a clearly defined trend, in the shorter hourly and 4-hour time frames. We are clearly in a bull market having this last week made an outside key reversal to the upside when compared to the prior week's candlestick on the weekly chart. Only the very short term hourly chart is displaying a pink background and this is what I call the wall of worry. The 240 Minute chart is my short term chart and it is clearly still in the bullish camp. Click on image to enlarge.

China's FXI was once again the most bullish for the week up 5.15% followed by the Russell Small Cap index at 4.43%, and the Emerging Market EEM at 4.26%, all very impressive. Clearly the leaders in this cyclical bull market are continuing to lead. The biggest loser by far was the Natural Gas ETF UNG down -12.11% for the week and the most down YTD at -65.18%. Friday's better than expected Non-Farm Payroll (NFP) employment report gave the US Dollar reason to rally which it did getting above its 50 day moving average for the first time since last April and with a corresponding drop in the price of oil and gold. The US Dollar is key to this market and if we see some follow through next week on the dollar to the upside I expect to see the stock market roll over and move south. Gold was down Friday -$45.20 to close at $1162.40per ounce. The GLD gapped lower Friday leaving a two day Island top. Interest rates gapped up higher on Thursday on the 10 Year Treasury Note $TNX and continued higher Friday. Next week is critical for many of these markets and we will continue to watch these numbers closely. Click on table to enlarge.