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Market Master Report - Let The Fireworks Begin!

|Includes: iShares S&P GSCI Commodity-Indexed Trust ETF (GSG), XOM

The S&P 500 Index, S&P 500 INDEX,RTH (.INX) continued its winning ways by gaining 25 points at the close of Friday's trading to finish at an impressive 1217.00. This index is now higher by 82% from the March 2009 low of 666.00; this bull run is full steam ahead at this time. Every dip is being bought and this week the buying was on heavier volume which is a change in character. The weekly 200 moving average is coming into play soon. Therefore, there should be some resistance at the 1225.00 level. However, while everything looks wonderful in the stock market world it is important to remember that this market has not had a single ten percent correction yet. The two minor corrections that the market did have were eight percent declines and about four weeks in time. As for now the trend is up and the markets are strong. The weekly resistance levels for the S&P 500 Index are 1225.00, and 1250.00. The S&P Index can be tracked and traded by the SPDR S&P 500 ETF (NYSE:SPY).

The SPDR Gold Trust (ETF) (NYSE:GLD) traded sharply higher at the close of Friday's trading finishing up 1.95 for the week to 113.19. The bulk of the move in gold came on Friday when the dollar got crushed falling from its overnight high. Often the dollar and gold will trade inverse to each other. This week the GLD held and back tested an important support level at 110.70. This is a daily chart head and shoulders pattern which has a target to the 120.00 level. As long as the GLD stays above 110.50 this pattern is still valid. The next weekly resistance level for the GLD is 115.00, 117.00, and 121.00. 

The United States Oil Fund LP (ETF) (NYSE:USO) gained just 0.35 cents for the week closing at 40.95. While it was a choppy week for oil, the pattern on the weekly chart is bullish. As long as the USO stays above the weekly 20 and 50 moving averages it must be given an upside bias. Should oil reverse and move below these averages a sharp move lower could take place. The weekly resistance levels for the USO are 43.00 and 46.00. 

The PowerShares DB US Dollar Index Bullish (NYSE:UUP) gained 1.32 for the week closing at 81.35. While this is a big move for the dollar there is another phenomenon going on here. The dollar seems to rally overnight, as it does trade 24 hours. However, when the opening bell rings at the New York Stock Exchange it seems to fade or outright sell off. This declining action gives a lift to the stock market especially most commodity and inflationary stocks. Note the iShares S&P GSCI Commodity-Indexed (ETF) (NYSE:GSG), or more specifically the Exxon Mobil Corporation (NYSE:XOM) to trade this relationship. The days when the dollar does not fade at the open it will usually reverse lower when the stock index futures are close to breaking a key support level. This is very strange activity for the dollar but well worth noting as it will always cause a reaction. Therefore, the overnight action in the dollar seems to be rather unimportant. In any case the weekly dollar chart continues to find some resistance at the 82.00 level. The weekly dollar chart pattern is still bullish and in a sloppy consolidation. The weekly resistance levels are 82.00, 83.00, and 84.00.

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