Friday Weekly Charts

 For a while, it looked like the market would act a bit rationally, pilling in a little bit after a huge run yesterday, but it was left to a last minute ramp job to kill any expectation of a pullback (according to Zero Hedge, SPY shares were put on the ":hard to borrow" list, causing forced buy ins). If you saw any news today, you know that the rest of the world is pretty upset about what Bernanke is doing (specifically, Brazil, China, and Germany, whose finance minister called QE2 "clueless"), especially after getting lectured by Geithner about weakening their own currencies. You may have also seen the results at the grocery store: yesterday I paid $3.49 for a bag of bagels that a month ago cost $2.29. Gas will be going up as well. That is the tax we will have to pay in order to have a functioning financial system. Get used to it, it's here to stay.Be prepared for the currency war to escalate. With prices skyrocketing, we will not be very popular with the rest of the world. 

Here is the SPX weekly chart. For all the times I put these fibonacci lines up, it's amazing I could never believe they would actually mark the correction zone we just went through. That is the problem I have had ever since I started trading; I have to suspend disbelief and aaccept that absolutely anything is possible.

 The Nasdaq is nowhere near it's fibonacci zone, That top line representing the upper half of the range? That is the 2007 high. We will probably hit it.

 The Dow industrials will move slower now that we are in bull market mode, but are in the upper half of the range. It has regained what it lost in the crash, but has a long way to go just to get to the 2008 high, let alone the 2007 high.

The transports also broke out this week, although i don't think this is a good bet to continue with oil going up. This is entering a resistance zone from 2008, and will probably not lead the way it did in 2009.

The Russell 2000 is the only one not to break out, but could next week, and aslo could tart assuming leadership. The pattern here is a near textbook bull market correction, although slightly longer than normal, and perhaps a little deeper as well. A pullback to around 675, followed by a strong move up, will be all the confirmation I need that this is headed for 800 or beyond.

You know, sometimes I just have to report what I see, not what I think. Everyone loves seeing his portfolio going up, including me, but when you realize it is going up because the dollar is going down, then what have you gained? Yesterday I put up a daily of the SPX priced in gold. Here is the weekly, which says, "not much".
But then again, this chart doesn't have a Ph.D.

I will have the new highs update shortly.