This week started out moving up on Monday but quickly failed and continued lower all week. The indices did have a small bounce on Friday with the SPX bouncing near the lows made on the so called fat finger May 6th.

The move down may stall here for a day or two possibly moving up a bit, but the trend is down and the markets will likely close lower by the end of the week. All three indexes printed a full engulfing bear candle in the weekly charts and that as we all know is not a bullish sign. The Head and shoulders pattern is looking more and more like it will confirm. The only problem we have with it is that it will be a very crowded trade so if it does confirm it will include a lot of volatility with big moves up and down as traders panic on every move up causing it to jump up in big moves and then dropping big as the weak bears run out. We hate volatilty for swing trading.

The RSI is pointing up and is still above the half way point on the daily charts so we can expect continued bounces until RSI also changes to down within an overall continuing downtrend.

Gold closed the week out above resistance but looks tired and it closed with a bearish candle on the weekly charts, so it can still go either way in the short term.

The U.S. Dollar is looking weak and tested the 85.00 support area this week. a break of 85 will likely take it down to the 82.60 area.

The Nasdaq Composite Index

Standard and Poors SP-500 index

The Dow Jones Industrial Averages Index .

GOLD - via the GLD

The US Dollar (Dollar Index )