The S&P 500 Index gained 26.72 points for the week ending Friday June 11th, 2010. This was another volatile trading week with dramatic large point swings in both directions before the market staged a sharp rally on Thursday June 10th, 2010. Whether or not this correction is over remains to be seen. However, these markets were oversold and into a major support area which made the probability of a bounce high. The important thing to realize is that this was the first time since March 2009 that the market corrected over 10 percent. The previous two corrections in June 2009 and January 2010 were for about 8 percent. It is also important to note that the February 2010 low was tested several times and held. The S&P 500 Index is now trading above the weekly 50 moving average and this could be short term bullish. Next week is options expiration for the month of June and that usually makes for another choppy and volatile trading week. Therefore, respect these markets as anything can happen at anytime. However, as long as the markets hold the February lows it should remain a traders market presenting numerous profit making opportunities for those who utilize it properly.   Please note the moves of the S&P 500 Index can also be traded utilizing the SPDR S&P 500 ETF (NYSE:SPY).





The SPDR Gold Trust (ETF) (NYSE:GLD) gained 0.82 cents for the week ending Friday June 11th, 2010 closing at $120.01. The GLD actually made a new all time high briefly intra-day on Tuesday, June 8th at $122.45 before pulling back. The GLD chart remains near a double top resistance level from early December. Therefore, it could be forming a consolidation pattern here which would turn out to be bullish going forward. However, over the past three weeks the shorter pattern could be forming a small bearish wedge pattern which could lead to a pullback down to the $115.00 level. Most traders and investors continue to buy gold on any pullback as the weekly chart remains in a nine year bull market. As long as the central banks around the world continue to print money gold will likely continue to be bought or accumulated on any correction. 





The United States Oil Fund LP (ETF) (NYSE:USO) gained 1.71 for the week closing at $34.23. This move higher comes as the U.S. Dollar pulled back helping most commodities to inflate. It is important to note that the USO held the July pivot low around $31.60. This level has now become an important and critical support area. As mentioned in the previous report as long as the USO remains below the weekly 20 and 50 moving averages it is in a weak technical position on the charts and could be setting up for a decline shortly down the road. 




The U.S. Dollar Index remains the most important chart in the trading universe right now. Simply put when the dollar declines the stock market inflates, and when the dollar rallies the stock market indexes deflate. It is just that cut and dry. The only time the dollar does not have an effect on the markets is when the trading volume on the stock indexes is extremely light and the market seems to be in euphoria over some bullish news or economic report like we saw in February and March 2010. Other then that, the Dollar is the driving force behind every rally and decline. Last week the U.S. Dollar Index pulled back closing lower by 0.98 cents to $87.25 after making a new high for the year on Monday June 7th, 2010. As the chart outlined last week the dollar was getting a bit extended and did come into near term resistance on the weekly chart. Therefore, a pullback is not a huge surprise. From this pattern the dollar could pullback further or even have a correction. However, once a pattern is in place again this currency could move back to new highs. At this point take it one week at a time.

Traders and investors that want to trade the U.S. Dollar index to the long side can use the PowerShares DB US Dollar Index Bullish (NYSE:UUP). For the traders and investors that would like to trade the dollar to the downside or short the currency can use the PowerShares DB US Dollar Index Bearish (NYSE:UDN).  Understand your key levels in this market, learn to utilize them properly and profit from this incredible traders market!

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