An Up & Down Week...

Well, it has been an up and down week which opened with a lot of bullish expectations but ended mixed. The Dow ended the week down 0.92% and the Nasdaq Composite ended the week up 0.72%. The week has been ramaged by an army of bad news trying to stomp down the bullishness in the market like a demonstration gone bad. Higher than expected CPI numbers, surging oil prices, uncertainty in the Iranian front, lowering oil inventory..etc... However, it seems like the bulls are still strong and have held up the Nasdaq composite so far. Next week is going to be a week of many significant economic releases. Could the numbers cause further panic and break the last of the bulls?

Looking at the weekly charts, both the Dow and the Nasdaq composite continue to look extremely healthy. Both indices continue to make a higher high and a higher low this week, which is an indication of strength. One warning sign jumped out at me from the Dow chart though. The weekly ADX, which is a trend indicator, is already above the 50 area, this is an area where we frequently see corrections or a change of trend to a neutral trend. I will be monitoring on a daily basis in order to pin point when and if it happens. Stay tuned...


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