Market Summary

It appears the sell off may be over as the major indexes break their downtrend line and the Dow, S&P500, and Nasdaq closed back over their 50-day moving averages. The S&P500 is above 1100 which is a milestone. The next target for the market is the June high.

The daily chart shows a breakout to the upside of a falling wedge pattern which is a very bullish sign. Short and intermediate term sentiment is bullish while Long term sentiment is neutral. The chart below of the SPY 240 min is my short term chart showing a bounce as I expected as I said in my prior post at the 50% Fibonacci level filling two prior gap areas. Earnings season has just begun with some good news in earnings however the economy still matters and unemployment is too high. How the future unfolds we will just have to wait and see. Click on chart to enlarge.

The small cap index $RUT has joined GLD and UUP on the green side for the YTD period which is another good sign. For the week, FXI was up 7.02%, $RUT up 6.6%, and EEM up 6.47% and it was green for all listed markets. Click on table to enlarge.