Market Summary

The market has once again fallen below its long term moving average as seen on the monthly chart of the SPY below. The good news is that with the month of August we have made a higher high and a higher low as it now stands. The momentum of the last several days has been to the downside and it is possible that this is the beginning of a wave 3 count to the downside which would take us to below the 100 level. There are however several areas of support and I am not in the camp of those who believe in a double dip at this point. Next week will tell us more as to the future trend of the market and we will just have to wait and see. Click on chart to enlarge.

We have lost two members of the "Green Team" in the YTD column from last week and the more riskier asset classes, the small cap and nasdaq which usually lead the market, were down more than the Dow or S&P500 which is not a good sign. The US dollar also has changed its downward trend and begun to move up which puts downward pressure on the equity markets. Click on table to enlarge.