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Market Master Report - Be Prepared!

|Includes: GLD, SPY, USO, PowerShares DB USD Bull ETF (UUP)

The bull run lives on as the S&P 500 cash index gained another 16 points this past week. Also note the SPDR S&P 500 ETF (NYSE:SPY). This move higher comes as the Dow Jones Industrial Average (INDEXDJX:.DJI) tagged the psychological 11,000 level in the final 30 minutes of the trading day on Friday, April 9th. The market continues to climb higher despite the rather poor volume trends. The overall rally is now 57 weeks long in time. This climb higher has been rather remarkable as it has rallied for a lengthy period without a single ten percent correction. The next major weekly resistance level for the S&P 500 will be the 1225 level. The 1200 level will be minor at this point, however, it is still an important psychological number for the public. 



The SPDR Gold Trust (ETF) (NYSE:GLD) rallied higher this past week by 3.38 to 113.64. The daily chart is signaling a head and shoulders break out pattern that would signal a target just above the double top. However, the GLD has resistance at 113.00 and 115.00, therefore, pullbacks are possible. Last week we mentioned that as long as the GLD stays above the weekly 20 moving average it must be given an upside bias, and that still remains the case. It is also important to watch the U.S. Dollar Index chart as gold and the dollar will generally trade inverse to each other.  




The U.S. Oil Fund LP (NYSE:USO) closed basically flat this past week. The USO is very close to breaking out if its long sideways base that it has been in since June 2009. Every time the USO has reached these levels it has pulled back sharply. With that being said, as long as the USO is trading above the weekly 20 and 50 moving averages it is still in a technically strong position in the near term. The next major weekly resistance levels for the USO are 43.00, and 46.00. The weekly support levels are 37.00, and 35.00 should the USO pullback.





The U.S. Dollar Index closed lower for a second consecutive week giving gold (NYSE: GLD), oil (NYSE: USO) and many other commodities a boost. The overall pattern for the dollar is still bullish after breaking out and closing above the weekly 200 moving average. Also note the PowerShares DB US Dollar Index Bullish (Public, NYSE:UUP). As long as the dollar remains above the 79.50 level it is still in a technically strong position on the weekly chart. If the dollar does slide lower it is prudent to expect the stock market indexes to trade higher. There is weekly resistance at 83.00. 84.00, and 85.00. The weekly support levels for the dollar will be 80.00, 79.00, and 78.00.

 

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