This past week we saw the indices continue to move higher making new highs and closing the week out near the top of the trading range. The NASDAQ is trailing the DJ-30 and SPX on lower volume and that is not what we like to see for a market making new highs. Regardless of how over bought this market is, it continues to move higher week after week.

The trend continues to be up so our selections will continue to be on the long side. Staying with the trend has served us well so there is no reason to change what we have been doing. Stay long and book profits at every opportunity will continue to be our plan until the trend confirms a change in direction.

The markets were closed on Friday with the exception of the Forex. After the big improvement in the unemployment numbers were announced on Friday we saw the Dollar bounce at 80.50. We mentioned 80.40 as the area we felt would be tested on a correction in last weeks commentary, so this is close enough.  We do believe the Dollar will now continue higher, with the real problems of many of the Euro Countries just now starting to come to the surface. The US Dollar is the safest of the world currencies at this point.

With a stronger dollar it will be difficult for gold to break out of the channel we have mentioned here many times. However If traders see the improving unemployment numbers in the U.S. as a sign of an improving economy and the potential increase in consumption then it is possible for oil and the U.S. stock indices to continue higher as money will leave the weaker countries and move back in to the U.S.

For this coming week, we will look for the Dollar to make a move back up to its previous breakout area which is now resistance. A break above it may cause some short term selling in the stock market giving us the start of the correction we have been waiting for. If the economic numbers continue to show improvement we believe a correction in the stock market will be another buying opportunity.  

We continue to grow increasingly vigilant for signs of a correction, but will stay long, keep stops tight and book profits quickly.

The Nasdaq Composite Index First support is at 2360, 2326 and 2293.  Resistance is at 2432 and 2457.

Standard and Poors SP-500 index First support is at 1150 and 1115, 1112.  Resistance is at 1190,1212 and 1221.

The Dow Jones Industrial Averages Index Support is at 10785, 10740 and 10575. Resistance is at 11000 and 11170. .

GOLD - via the GLD GLD Support is at 108.80 and 106.60 . Resistance is at 110.60, 110.00 and 112.20.

The US Dollar (Dollar Index ) The U.S. Dollar corrected to the 80.52 area and we expect will now bounce and test resistance at 81.34. Support is at 80.40. Resistance is at 81.34, 82.25, and 83.20.