A lot of drama this week with SPX hitting a new high on Monday just to lose every gain and change in two violent days on the downside. However, after hitting SMA 120, SPX bounced up and managed today to advance 13 points and to climb above both EMAs. It is possible to see SPX trying to claim 1,530 level once again like it did in previous occasions just before suffered some decent corrections. Even if correction started I don't expect to last too long or to go too deep (no lower than 1,400).
Overall market lost 5 points this week, not a big deal except that it has interrupted the 7 weeks in a row on the upside performance.
Daily chart looks interesting, pay attention to DMI that is very close to turning red. SPX remains comfortable above both SMA50 and SMA200. I made a mistake on the chart, I wrote SMA 50 at 1,575 instead of 1,475.
Gold had another bad week but managed to stay above the support around 152 on GLD.
The dollar is doing good lately. Look at the weekly DMI that just turned green. We may see a rally here with big consequences on both stocks and gold prices.
Overall market remains bullish long term but some damage had beed done on intermediate time frame. Another week on the downside will probably give a "sell" signal.
Take care!
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