Friday was a quiet day in the market, but ended a great week for the market. The major indexes closed up +7% for the week. There was an expectation that last week was going to be a bad one for the market, as the S&P and Dow both shows bearish head and shoulders patterns, and the NASDAQ appeared to show a double top. Those patterns have been negated, and the market is looking good here, but really needs a rest.
The weekly chart of the S&P 500 now shows what could be a bullish Inverse Head and Shoulders pattern. Something to keep an eye on.
There were 4 triggers from the Watchlist on Friday, none of them were big movers. Lets take a look at those:
There was better action in some of the triggers from earlier last week.
The dollar continues to do poorly, and looks like it could be testing its June low soon.
The dollar has an inverse relationship to the market, so if the dollar moves lower as it looks like it wants to, then we should see higher prices in stocks. UDN, an inverse dollar ETF looks very bullish here on the weekly chart.
Another way to play a weak dollar is in FXE, an ETF that tracks the Euro. It looks ready to move higher here.
I’m not terribly excited about any of these charts. The market could use a break here, but this could be an active week with some key earnings due, and these might move.
Good luck and good trading!
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