After an opening downdraft to start the week, stocks, once again, in stealth-like fashion — on minimal volatility –tacked on another 1% in the safe haven of the biggest NYSE stocks, by Friday, – but could not revive the New Economy sector, which fell to a 5 month low when compared to the Old Economy. Our critical Upside/Downside volume numbers returned to a neutral reading, which means a series of heavy Downside Volume days are critical before we a top can be contemplated. The last 2 Bearish Weekly Squats remain unsatisfied, and were followed last week by a third, on a 13 week high on volume, so this one should produce a decent correction. Downside SPY targets are 278.35 – 273.94, which should be followed by a strong bounce. An October top is still anticipated.
When it appeared that gold had decisively cleared 1200, the cartel puked out 10,000 futures contracts early Friday (worth $1.2B) in 1 minute, driving the paper price to 1191 from 1211 overnight. A steady recovery brought the metal to 1199 by Friday’s close. The shares (XAU) outperformed the metal gaining 4.2% on the week (66.03), on a 4 week high on volume, generating a Bullish Weekly Squat. Fib resistance 77.05. The 55 week mvg avg for the metal 1264.86.
Declining 5 out of last 6 weeks, the greenback fell less than 1%, (UUP 24.99) on the way to Fib support 24.60 – 24.32 (strong).