A Dangerous Week Ahead...

After an impressive 1 month run, the Dow finally failed right at its weekly 30MA resistance line, which corresponds to the 13000 resistance zone. In fact, if the Dow breaks down below the 12750 level significantly again this week, it could spell the end of an intermediate uptrend and the beginning of an intermediate downtrend. For now, short term indications still indicates more bullishness than bearishness and the daily 30MA still serves as a strong rising trend line. On the fundamental front, rising oil prices continue to be the concern as oil holds strongly above $125. This could affect the CPI numbers due this week (see economic calendar). Oil continues to be the only nemesis so far as Gold and other hot commodities continue their decline.


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