Market Summary

While Short-term Sentiment as indicated by the background color on the image below has turned bullish, Long and Intermediate-term Sentiment remains bearish. We have come off of a long extended rally with a high on 1/14/10 of 115.14 and a recent bearish correction of approximately 10%. The question is whether the correction is over or is there more downside to this market. Since all bear markets begin as a correction a little caution is appropriate here. Click on image to enlarge.

For the week only the $US dollar tracking ETF UUP and the natural gas ETF UNG were down with all the other indexes in the green. Of note in the YTD column only the UUP is up 3.10% while all the other indexes are in the red. The stock market goes in the opposite direction to the $US dollar and as the dollar rallies the stock market declines. With the concern over Portugal, Italy, Ireland, Greece and Spain (PIIGS) credit rating the Euro has declined resulting in the rise of the $US dollar. How this all plays out we will just have to wait and see. Click on table to enlarge.