Market Summary

Even though there were only four days of trading last week it was a week that marked the best weekly gain in the market in a year fueled by expectations for the upcoming earnings seasons. As I mentioned in my last post I was expecting a bounce and the question is if this is just a bounce or a bottom in the market? The 240 minute chart of the SPY below shows that we have filled the gap marked by the pink oval. There is still significant resistance ahead at the 109 level which is the 61.8% Fibonacci retracement level from the April high. The real question is will the market go above the recent high in April or below the low in June next? If earnings beat expectations this earning season there is a chance we could take out the April high next. July has proved to be a very good month in the market so far and lets hope it continues. We will just have to wait and see. Click on image to enlarge.

The performance table below shows gold and the US dollar as the only asset classes that are up for the year with the small cap index coming in third place.
It was a good week for most of the funds with the emerging market ETF EEM looking strong. Click on table to enlarge.