Large Still Life With Pedestal Table

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Really, until the market breaks the range of the first two weeks one way or another, this is noise! However, I noted all last week how disturbing and potentially disruptive the many sectors and groups floundering as 3 out of 4 indices ran to new highs might be.

Counting on a few tech, pharma and solar names to hold everything up seems as flimsy as expecting a single beam to keep a roof secure.

The most fascinating aspect of the market for me right now-the shifting relationship between the US dollar, interest rates, and the metals.

The dollar looks like its bottoming as do both gold, silver (not to mention many miners and copper). If one were to represent that anomaly pictorially, it might look like Picasso’s Cubist Period

S&P 500 (SPY) Could be nothing more than a 2-day correction from the highs since the183.45 area or fast moving average held.

Russell 2000 (IWM) New highs but not quite the reversal strong enough to scream, “Everyone out of the pool!” just yet

Dow (DIA) Although didn’t quite clear 165, it could be forming a bull flag which the market would find relieving

Nasdaq (QQQ) Like SPY, could be just a correction, could be worse

XLF (Financials) Ball and chain or resting-still indecisive

SMH (Semiconductors) Not unexpected after Intel earnings to see this gap lower. Did, however, hold the fast moving average

IYT (Transportation) Another one we hope merely corrected to the fast moving average

IBB (Biotechnology) Still strong if not a bit extended

XRT (Retail) Where public sentiment lives it seems-closer to the 200 than the 50 DMA right now

IYR (Real Estate) 65.06 resistance to clear with 64.00 support to hold

XHB (Homebuilders) Will test the 50 DMA this week for sure only a few cents away. But, will it hold?

GLD Over 121.04, close your eyes and follow

USO (US Oil Fund) Perhaps the theme this week will be more of a move to raw materials and the like

OIH (Oil Services) Looks ok here but under the 50 DMA

TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs Hard to believe except for the fact that the economy is not as robust as the FED would like

UUP (Dollar Bull) Confirmed phase change to recovery.

EWG (Germany) Still a candidate now that island gap was filled

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