A spinning top candlestick formation on the weekly bar of the S&P500 shows the sideways action we faced last week. As stated in the prior week's forecast, volume is quite lackluster and we are seeing a strictly news driven market.
The weekly chart is quite messy and the price patterns forming are weak as well, with the exception of the head and shoulder formations on the S&P, Dow and Russell. The NASDAQ could be in a H&S formation if you look closely, but is clearly the strongest of all four top-line figures.
We saw a continued drop in crude oil and gold prices this week and will expect this trend to continue as recession troubles are not nearly over. The 10-Year Treasury Notes ($TNX) have fallen quite a bit as well from their prior highs and are now coming into a support area. We will continue to watch these correlations as the change.
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