The S&P 500 Index gained nearly 26.00 points for the week ending Friday June 18, 2010. This move higher took place during a quadruple witching options expiration week. This is when expiration's will take place in stock index futures, stock index options, stock options and single stock futures. Therefore, there is usually a lot going on during this entire week of trading. It is also important to remember that many in the public became extremely bearish in early June and bought a lot of puts on the market. Rarely will the powerful institutional money allow the small retail trader to collect on such an investment; the institutions will usually rip the market in the opposite direction of the popular strike price. As of this time the market indexes are bouncing higher purely due to the U.S. Dollar Index declining. When the dollar dips or declines the stock market indexes rally or inflate. The short term weekly resistance levels on the S&P 500 INDEX,RTH (INDEXSP:.INX) will be around the 1122.00 area and 1140.00 level.  Traders and investors can utilize the SPDR S&P 500 ETF (NYSE:SPY) as an alternative means of tracking the S&P Index.




The SPDR Gold Trust (NYSE:GLD) continued to climb this week to yet another new all-time closing high. While the GLD gained 2.82 this week finishing at $122.83, the high pivot was $123.50 intra-day on Friday June 18th. This could be signaling profit taking late in the day or even that a pullback is on the horizon. Looking at the bigger picture gold remains in a bull market that is now nine years in length. Gold still remains very strong on the charts and can be bought on pullbacks or corrections. As long as the central banks around the world continue to print money in order to inflate the markets back to health gold should remain strong. The next weekly resistance area for the GLD is the 125.00 level. 





The United States Oil Fund LP (ETF) (NYSE:USO) gained 1.18 to close the week at $35.41. Again the inflationary rally in oil took place on the back of the weaker U.S. Dollar. This is now four weeks that the USO has rallied since holding the critical $31.60 support level. While the bounce in the USO have been higher the USO still remains in a weak technical chart position as long as price remains below the weekly 20 and 50 moving averages. Please remember oil is very sensitive to adverse weather, geopolitical events, and the U.S. Dollar. The important weekly resistance level is $37.50.  




The U.S. Dollar Index remains the most important chart in the markets at this time. When the dollar declines the market indexes inflate. The opposite is true when the U.S. Dollar rallies the stock markets deflate. This week the U.S. Dollar Index dropped sharply by 1.94 to close the week at $85.56. In the currency world a decline of this magnitude is a lot of meat and potatoes. Just notice the two week rally in the major stock indexes coincides with the sharp two week decline in the dollar. The U.S. Dollar Index will have weekly support around the 85.00 area and more around the 83.00 area.

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).



Get in-depth analysis, along with exact entries/exits, swing trades, and scalp trades, join our Research Center or Intra Day Stock Chat NOW and enter the ranks of the Pros!