Friday Weekly Charts

 I am a little short on time today, so my post will be brief. i will have the usual charts, but woll be a bit less verbose, which is probably a good thing. The market has been consoldating right about 1185, poking higher and lower occasionally, only to be sold off or bought up immediately. It is clearly in a holding pattern, waiting for the events of next week to unfold.

 the weekly chart sure looks like it wants to pull back here. the question is, will it break through the April high first? probably not, but a nominal pullback will give the market the necessary ammo to make another assault at it, perhaps as early as January. That is, unloess Bernanke actually goes through with his "QE 2", in which case stocks, and everything else, will be bought up with increasingly diminishing dollars.

 The Nasdaq is nearly at the April high, and unlike the others, really isn't slowing down. It would take a sudden, unexpected reversal to stop this one. Is that possible? Oh, yeah, I see one in late April of this year.

The Dow is also near the April high, but is really laboring nowm, and had a marginally down week. Volume was a little muted on the downside, but this looks like it is really going to struggle trying to break out here. Agai, a nominal pullback would be the most bullish scenario here.

The transports look pretty much the same. These have lost the leadership they had earlier this year.

The Russell 2000 has resumed it's laggardship, after leading this rally in the early stages. . If real trouble develops, we will probably see it here first.

Next week could be quite interesting. he market has apparently priced in a substantial amount of QE, and I would not be surprised to see a "sell the news" scenario. The mess in the financial secot is also beginning to take it's toll, and I think it will be about as well contained as the sub prime mess was.

I will have the new highs update shortly.