A flat week

After four weeks on the upside SPX ended up two points down compared to the previous Friday and as expected nothing changed at the technical level. We continue to have a bullish EMAs crossing on 60 minutes chart with SPX above both EMA25 and EMA50 and rising five days SMA around 1132.

On weekly chart DMI advanced a little bit despite this flat week but remains on the negative territory. The uptrend line climbed to 1090 but as I mentioned before the slope is too steep so you better keep an eye on the uptrend line on the daily chart which is now around 1063. Of course bulls don't even want to consider visiting 1060 again but I trust that uptrend line more than that on weekly chart. If bulls manage to keep the market under their control for another couple of weeks even if market is merely advancing a few points we may revisit the uptrend line when it does climb around 1090-1100. This is only a speculation, of course.

Meantime gold continues its rally started at the end of July showing a lot of nervousness present in the market at this point. With Feds determined to do whatever it takes to prop the market dollar is sinking to levels close to the low seen in December last year and it may go further down.