This past week was very volatile and a dangerous place to be. It didn't matter if you were long or short, there is a good chance you felt some pain.  We were fortunate enough to anticipate the turn coming on Thursday and warned our subscribers to cover their shorts early in the day on Friday. We did not play it perfectly but we avoided any serious pain and are now long one position.

The big moves down on Thursday and early Friday caused us to change our short term analysis. We could not help but feel the panic in the selling during the first couple of hours on Friday.  Like they say if there is blood in the streets it must be time to buy.  The trend is down and we expect this trend to continue for a few weeks.  However the down moves we have seen so far have been big and fast so we have to expect that the retracements or bounces will also be big and fast. Fridays reversal was also strong so we are expecting the markets to move up this week.

The bears were loading up on the way down so we can expect them to cover their positions on the way up causing the move up to go higher than it probably should.  We believe that if this bounce is confirmed on Monday, the markets will very likely test their 80 day sma's and depending on the speed of the move they may also test their 50 day sma's.

There is a battle going on between those that think the market is ready to crash and those that are still trying to buy the dips.  It is very possible that we are in the early stages of creating a new channel that the markets will trade in for the remainder of the year.

The Nasdaq Composite Index First support is at 2100 and 2050.  Resistance is at 2156, 2200, 2230 and 2264.

Standard and Poors SP-500 index First support is at 1040, 1020 and 1000.  Resistance is at 1070, 1085, 1100 and 1115.

The Dow Jones Industrial Averages Index Support is at 10,000, 9835 and 9500. Resistance is at 10050, 10173, 10,300 and 10390. .

The KBW Bank Index Support is at  43.30 and 42.50. Resistance is at 44.80, 45.30 and 46.90.

GOLD - via the GLD GLD Support is at 102 and 100. Resistance is at 106, and 110.

OIL (light sweet crude) Oil bounced then moved down strong but in the end closed out the week not too much lower that were it did the previous week. It recovered nicely in after noon trading, the indicators are pointing lower but if the markets recover we expect oil will follow.

The US Dollar (Dollar Index ) The U.S. Dollar continued higher this past week, surpassing our first target. It did hit some minor resistance at 80.68 ans is now very overbought so a correction is now overdue. We do expect the current up trend will last through the end of March. But we do expect a significant correction to start as soon as next week. Support is at 79.60 and 78.40. Resistance is at 80.68 and 81.90.