Sunday, November 22, 2009

week of Nov 23 09... continued modest declines







Well for this coming week, I expect modest declines for the SPY... (to 107 - 108 50DMA)... I don't expect a bloodfest. The dollar appears to have caught a small uptrend thus supporting lower stock and commodity prices, but nothing that will stop the larger timeframe downtrend. I don't expect a major market correction to occur, until the UUP trades around the 21.90 - 22 level which is the major low from last year for the dollar. Maybe the SPY will be at 120 at that time... In the meantime, I don't think a dollar rally will exceed 22.60 on the UUP (where the 50 DMA is).

USO can expect to continue it's small downtrend until 38.40 where it should bounce. GLD and SLV are way over extended and ripe for a pullback... when this pullback will occur is anyone's guess... I think GLD is going parabolic upwards for now... any day could yield a nasty correction, but in the meantime, the path of least resistance is up.

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