This past week the markets continued higher, however on Friday they had a strong distribution day. We have been expecting a correction to begin sometime soon as all three indices are very over bought. As we all know one day does not make a trend so there is no way of knowing if the correction has started or if Friday was just a down day and the uptrend is going to continue.

There is support nearby on all indices at the uptrend line from the February lows. We really won't know if a correction is under way for a couple of days when that trend line is tested. The markets can move sideways to slightly down for a couple of days then bounce off that trend line. If they continue down on Monday and break below support and the trend line it will be safe to assume that a correction has begun. This move up was fast offering very little area for support on the way down. A test of the 1112 area on SPX is definitely a possibility and if that is broken the markets could easily test the February lows.

We will be starting the week out in cash. We will post a couple of long selections for those that feel like they have to be in the market but for our money cash is the best place to be until we see what direction this market is going to take.

The Nasdaq Composite Index First support is at 2360, 2326 and 2293.  Resistance is at 2400 and 2457.

Standard and Poors SP-500 index First support is at 1150 and 1115, 1112.  Resistance is at 1170 and 1212.

The Dow Jones Industrial Averages Index Support is at 10612, 10445 and 10380. Resistance is at 10820 and 11170. .

GOLD - via the GLD GLD Support is at 106.60 and 105.30 . Resistance is at 110.60 and 112.20.

The US Dollar (Dollar Index ) The U.S. Dollar continues to consolidate. Support is at 79.60 and 78.50. Resistance is at 80.90, 81.34 and 81.90. Just bouncing withing the channel.