This past week the markets made new highs only to give it all back on Friday. The trend is still up and all we really have is one distribution day after weeks of positive gains in the markets. However the markets are very over extended as we have been mentioning here the past few weeks and a correction is not only over due but needed if we are truly in a new bull market and it is going to continue higher.

Until the indexes start putting in new lower lows and lower highs the uptrend will remain in force. Which lows you consider as a lower low depends on your trading time frame. If you are long from March 2009 then a new lower low would have to be below 1044.50 on SPX and that is a long way from here. If you are a shorter term trader like we are here then we will be looking for a low below 1175 on SPX.

At this point any correction will be considered a buying opportunity, and will remain that way until the 1044 area is taken out. If that is truly the direction the market takes it can be months before that happens as it will likely bounce at various points making lower highs and lower lows along the way. It is too early to know. This coming week we have posted some short selections to our weekly watch list for the first time in months. We also have a couple of long selections in case the market continues higher.

The dollar bounced back up this week ending the week almost where it began and back above the 50 day sma. Fridays move caused Oil and Gold to move back down. Gold is looking very weak and is back trading in the channel. At this point the charts are not pointing in any direction for the dollar as it could easily move up to the 81.40 area and turn back down. It does look like it will move up this week but whether it breaks back or or fails we will have to wait to find out.

The Nasdaq Composite Index First support is at 2467, 2383, 2360 and 2326.  Resistance is at 2518 and 2550.

Standard and Poors SP-500 index First support is at 1175, 1150 and 1115, 1112.  Resistance is at 1212 and 1221, 1228.

The Dow Jones Industrial Averages Index Support is at 10973, 10830, 10785, 10740 and 10575. Resistance is at 11155, 11170, and 11500. .

GOLD - via the GLD GLD Support is at 110, 108.80 and 106.50 . Resistance is at 114, 117.

The US Dollar (Dollar Index ) The U.S. Dollar dropped down to 80, below our first support area of 80.40 but it did bounce and now looks like it will test the 81.40 area. the next support below 80 is 79.50 next resistance is 81.40 then 82.