Market Summary

The correction appears to be over and sentiment has changed to bullish on all time frames. As can been seen on the weekly panel on the image below there was a weekly gap on the real bodies of the two most recent green weekly candles. The market is above its 50 day moving average and the next target is the prior 115.14 high of January 14, 2010. A breakout above that would be very bullish. Click on image to enlarge.

It was a wonderful week for the markets which were up nearly across the board. For the week gasoline as tracked by the UGA was up most at 7.05% followed by the oil ETF USO up 6.28%. Only UNG and FXI were in the red. Of note is last Friday's release of the CPI and PPI (Consumer and Producer Price Index) which was lower than expected indicating low inflation and low pressure on the Fed to raise interest rates. The $US dollar had gapped up higher on Friday and reversed course closing at the low of the day. If the dollar declines here it will give the stock market a chance to rally. Click on table to enlarge.