Market Breakdown

Dollar/Gold/Crude/Nat Gas
with all the moving averages under DX(dollar) given it support and the EUR/USD for a month holding support 1.368 and NO buy signal on the Jerk, absolute no trade here same as last week =neutral, last week notes in GLD charts was showing bullish activity, this week little less bullish and more sideways action in the pattern = neutral, last week in crude the pattern was setting up bullish, what happen last week was sideways consolidation, but the the Jerk is showing price strength in the sideways consolidation, the pattern is showing a brake above the 5 month channel(83.00), but the sideways action looks to continue this week =neutral, FCG(nat gas) is in a 6 month channel, no major weakness in price, last week notes was bullish and the pattern trade sideways, need to see a define brake over 19.00 to change pattern to bullish =neutral

XLF is still sitting on 20 &50day support, the pattern still showing a bullish move to the top of the channel, but the the Jerk is showing weakness in price is coming in the next 2 weeks, the underline stocks in this ETF are showing same pattern =bullish

the notes form last week was showing a bullish move in the pattern
and that bullish pattern continues this week, if you listen to the noise you would have been chopped up last week in the Q’s, but the pattern had a different tell this tight bullish channel and a bullish price strength formed in the the Jerk last week, the pattern is forming a move to a retest of the Jan 10 high in the weekly chart =bullish

in the XLB last week notes stated that resistance was at 32.63 the XLB hit 32.58 and sold off, a failure to brake resistance and a bearish channel  setting up with the 20 &50day above as resistance to any rally =bearish, the IYT bullish pattern setup last week is bullish this week resistance is still at 75.68, define brake of resistance and the weekly Jerk brake of 0 line would setup for a new 52 week high =bullish

JNK(high yield) last week bullish pattern is bullish this week, on the weekly chart the 20day under for support and the bounce in the Jerk is setting up for a bullish to the 200day moving average, TLT, the notes and the pattern were completely wrong last week,  the TLT broke out of the falling wedge pattern, the Jerk and the squeeze is showing a bullish move this week, but I don’t see strength in the bullish move =neutral

Foreign Markets
GXC is still in a sideways pattern with resistance at 69.33 s define brake of resistance and less choppiness in the Jerk would move to a bullish pattern =neutral, the Shanghai broke above its 200day, a define brake of resistance 3145.09 bullish move in the pattern =neutral —-I only look at  China’s market, really only one that matters for right now!

there was a lot of bullish patterns setting up last week, its was given a tell that the sell off showing up in the fractal pattern SPX( look at chart below) was only intermediate trend change. one of ETF that was a tell of market strength is the IYT which had a bullish pattern last week and continues to setup bullish this week, the noise in Tech (Q’s)would have chopped you up last week, but last weeks pattern was showing bullish price strength, the Q’s are going to do some bullish damage this week,,,,, the traders like there junk bonds-high yield-, this is positive for the overall market, I could not be more wrong in the TLT pattern last week ,,,,the dollar is “sitting in limbo waiting for the tide to turn” this causing the XLB bearishness and gold and crude to trade sideways, I am seen little more bullish pattern in crude,still neutral, the following week maybe the bullish rally,,,,,,
For the market pattern in SPX =bullish

the notes on 2-17-10 and 2-28-10  SPX fractal pattern



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