By ITMS News on April 4th, 2010 7:56pm Eastern Time
The S&P 500 cash [also tracked via the, SPDR S&P 500 ETF (NYSE:SPY) ] gained another 12 points this past week as the bull move continues. This rally from the March 2009 low is now 56 weeks long. The SPX has gained 77 percent from last years bottom at 666.00. By all standards this has been a rally for the ages. The remarkable fact about this rally is that the SPX has not had a single 10 percent correction since it began on March 6th, 2009. The steepest pullbacks have been for about 8 percent, and 4 weeks in length. This occurred in June 2009 and recently in January 2010. The next important weekly chart resistance levels are 1200.00, and 1225.00. Should the SPX cash pullback the 1150.00 level will now be the first important support area followed by 1120.00.
The SPDR Gold Trust (ETF) (NYSE:GLD) gained 1.67 this past week from last weeks close. This move higher in the GLD comes as the U.S. Dollar sold off and most commodities soared. The GLD is now trading back above its weekly 20 moving average. This is a technically strong picture on the charts. The last time the GLD tagged or pierced its weekly 50 moving average was in April 2009 nearly one year ago. The only negative that can be found on the GLD chart is the series of lower highs. However, this could just be a long sideways consolidation pattern before it retests the highs again. As long as the GLD stays above the weekly 20 moving average it must be given an upside bias. The weekly resistance levels for GLD are 113.00, 115.00. and 120.00. The weekly support levels for GLD are 105.00 and 101.00.
The United States Oil Fund LP (ETF) (NYSE:USO) rallied this past week gaining 2.41 from last week's closing price. This rally in the USO came as geopolitical fears got priced in, China consumption grows, and the U.S. Dollar declined sharply to give most commodities a strong bounce. The USO is very close to breaking out of a long sideways base it has been making since June 2009. The one negative for the rest of the major stock indexes will be if high energy prices bring down the markets. Remember back in July 2008 it was high oil that was a major catalyst for bringing down the economy. The current economy may not be in a position to hande $85.00-90.00 a barrel of oil. We shall see. Currently oil and the markets are trading higher together. The weekly resistance levels for the USO are 42.00, and 45.00. The weekly support levels for USO are 37.00 and 34.00.
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