Stock Market Updates - Week 41

Lets take a look at the $SPY.

Price broke above it's 50MA resistance early last week (yellow highlight), and is currently bumping right into the horizontal resistance like at $122.

The overall sentiment has been looking pretty bullish lately, with the market gaining 15% within the past 2 weeks, from $108 - $122.

Another bullish signal shown was the negative divergence of price against the RSI/MACD indicators(shown in green lines)

Despite all these bullishness, the market has really some tough challenges ahead before it can really come out from the woods.

1st, it will have to prove itself trustworthy by breaking out the current $122 horizontal resistance.
2nd, it will have to stay put well above that $122 line and confirm the breakout.
3rd, the next 200MA hurdle is waiting for it at $126.

With all the unknown out there, I personally have no clear direction as to where the market will be heading in the near few weeks. The best thing to do is to sit tight on cash, and wait for the next clear direction.





$GOLD looks like forming a Bear Flag right there.

Look at the extreme volume that occurs on those big bearish days (yellow highlight).

Despite the appreciation in price in the past 2 weeks, the volume was meager compared to the down days. And seems like the steam is slowly dissipating, which is shows in the volume.

This might be a good chance to buy the PUT option, or short the etf ($GLD). Will be watching closely on this one.






Now let's take a look at Crude Oil ($WTIC).
The chart tells an almost similar story to the $SPY.

We see the same double dip action, with a negative divergence on the RSI/MACD indicators.

Despite all the bullishness, the overhead resistance is at the $90 and $95, which coincides with the 200MA.

A lot of work ahead if crude oil were to get out of the woods.







As for the US Dollar's update, check out my recent post on how $USD displayed a good long trade opportunity.