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fib_1618

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So with the NYSE interest rate sensitive advance/decline lines continuing to see higher highs, and the BETS indicator improving to a +75 reading this past week, we'll continue to give the benefit of any doubt to the bulls next week in what should be a positive September overall.

Although the holiday shortened week was rather sloppy, the major market indices ended up squeaking out an average gain of .15% and extending the streak of weekly gains to five in a row. Looking overseas, Germany's DAX index was up nearly 3% in its effort to make up for lost time on the back of positive news coming out of the Ukrainian situation, while England's FTSE index is now 75 points from reaching its all time price highs which were made back on December 30, 1999.

Having taken the time to rescale the time axis on the breadth charts this week shows that, with the exception of the NYSE REIT advance/decline line, all of the NYSE related money flow lines closed Friday slightly below their high levels of just the week before. Looking particularly at the NYSE Bond CEF advance/decline line chart now and you can see the direct correlation between the direction of money flow in relation to the yield of the 10 year note as well. With very little movement in the A/D lines in general, we'll call this past week a simple "pause to refresh" in what continues to be a very strongly trending market to the upside.

Gold's break below the $1270 support level on Monday wasn't, at first, accompanied by the precious metals stocks which provided some near term breadth to price divergence that we hoping to see for a tradable bottom, but that all changed on Thursday as stocks finally got the memo and caught up to the metal's price leadership weakness. Because of this, it's not likely that we'll see another tradable bottom in the metals for another couple of months as this opens the door for some additional challenges of the $1180 (gold) and $19.10 (silver) levels made at the end of December. Our short term expectation then is for both the Precious Metals and XAU advance/decline lines to now continue to traverse to the lower end of their current ranges and we'll monitor things between now and then.

So...with the market giving us nothing really new to work with, the ISEE data showing a preponderance for option traders to continue to believe that each pull back is that of an important price top, and the BETS indicator remaining in "Buy" mode, we'll continue to go with the path of least resistance next week which remains up until proven otherwise.

Have a great trading week!

US Equity Markets:

[breadthspx090514]



[breadthdjia090514]


[breadthspec090514]


[breadthpre090514]

US Interest Rates:

[breadthtnx090514]

US Real Estate:

[breadthreit090514]

Precious Metals:

[breadthpm090514]


[breadthxau090514]

Australia:

[breadthaus090514]

England:

[breadthftse090514]

Germany:

[breadthdax090514]

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