The SPX rallied again this week gaining 34 points from last weeks 1105 close. The SPX is now in striking distance of the January high which was 1150. This has been a remarkable rally since March 2009 as the SPX nor any of the major indexes has had a single ten percent correction yet. Should the SPX trade above January's 1150 high level the 1175 and 1200 levels would be the next short term weekly resistance areas.





The GLD closed higher again this week recapturing the 110.00 level. While the GLD remains very strong technically on the charts traders must watch for the possibility of a lower high pivot being formed. Often this pattern could signal a downturn. However, until that happens one must give the GLD an upside bias especially if the U.S. Dollar pulls back. The next important weekly resistance level for the GLD is 120.00.





The USO gained about a point on the week. As stated last week the USO is now trading near it's high range that it has been in since June. Everytime the USO has tested the high range it has pulled back. Until it can prove itself by breaking out and closing above the range on a weekly chart it is likely to pullback again. However, the consolidation phase is now 9 months long and oil is above it's weekly 20 and 50 moving averages. Until it breaks below these key moving averages traders must give the USO an upside bias.





The U.S. Dollar index remains one of the most important charts that traders and investors must watch. Please note that the stock market gains whenever the dollar is flat or pulls back. This relationship is not proportional, however, it is reactionary. many times the dollar is trading higher to start the day and will often fade from it's morning high. When this takes place the stock market usually rallies. Currently the dollar looks to be forming a consolidation base on the weekly 200 moving average. While this pattern could turn out to be bullish for the dollar it may not play out right away and the dollar could pullback further. Please remember when the dollar declines most commodities and inflationary stocks will rise. The opposite is usually the case when the dollar rises. 



If you would like more daily up to date information on cycles, pivot dates, DJIA, SPX, NASDAQ, Oil, Gold, U.S. Dollar, and more, visit the RESEARCH CENTER.