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Weekly Chart Review

Stocks were so overbought that Friday's nasty selloff didn't even break the uptrend line. From a short term perspective, Friday meant nothing.

Stocks were so overbought that Friday's nasty selloff didn't even break the uptrend line. From a short term perspective, Friday meant nothing.

From a longer term perspective there is room for more correction within the context of a bull move. Good support should be found at the Fibonacci retracement level around 1220. Further support comes in at 1125-1150 but at this point there is no reason to expect this to carry that far.

From a longer term perspective there is room for more correction within the context of a bull move. Good support should be found at the Fibonacci retracement level around 1220. Further support comes in at 1125-1150 but at this point there is no reason to expect this to carry that far.

The dominant trend for the Euro is lower. Expect the short term uptrend line to be challenged soon.

The dominant trend for the Euro is lower. Expect the short term uptrend line to be challenged soon.

The gold correction continued last week. Support at 1320 was broken but the rally Friday put the weekly close over that level. Support at the 200 day MA.

The gold correction continued last week. Support at 1320 was broken but the rally Friday put the weekly close over that level. Support at the 200 day MA.

The scary scenario for gold longs is a correction to the long term uptrend line....around 900.

The scary scenario for gold longs is a correction to the long term uptrend line....around 900.

The more general commodity rally continues despite gold's troubles. That probably can't go on for very long; the dominant factor is the dollar. If the dollar rallies against gold it will be hard to keep other commodities rising.

The more general commodity rally continues despite gold's troubles. That probably can't go on for very long; the dominant factor is the dollar. If the dollar rallies against gold it will be hard to keep other commodities rising.

REITs actually managed to break out to the upside last week although there was a significant pullback Friday. The fundamental case is thin at best.

REITs actually managed to break out to the upside last week although there was a significant pullback Friday. The fundamental case is thin at best.

If you've been waiting for a pullback in the natural gas etf here's your chance.

If you've been waiting for a pullback in the natural gas etf here's your chance.

This chart looks ominous. Emerging market bonds appear to be establishing a downtrend, failing repeatedly at the 50 day MA. That is classic bear market behavior.

This chart looks ominous. Emerging market bonds appear to be establishing a downtrend, failing repeatedly at the 50 day MA. That is classic bear market behavior.

A rally in long term bonds is looking more and more likely. It could be substantial too; that downtrend line is a long way up.

A rally in long term bonds is looking more and more likely. It could be substantial too; that downtrend line is a long way up.

Intermediate munis appear to have finally found support.

Intermediate munis appear to have finally found support.

I've been warning about this for a while but just to reiterate - emerging markets have peaked for now. Friday's big selloff is being blamed on Egypt but I think it is at least partially anticipation of the end of QE II. If you have an inflationary boom and the inflation ends...so does the boom.

I've been warning about this for a while but just to reiterate - emerging markets have peaked for now. Friday's big selloff is being blamed on Egypt but I think it is at least partially anticipation of the end of QE II. If you have an inflationary boom and the inflation ends...so does the boom.

Alright, NOW India is getting interesting.

Alright, NOW India is getting interesting.

The Egypt riots pushed the Israeli market down to its uptrend line. Frankly, I'm surprised it didn't get hit harder. I'm still long.

The Egypt riots pushed the Israeli market down to its uptrend line. Frankly, I'm surprised it didn't get hit harder. I'm still long.

The correction hit Japan a bit too but I want to buy the dip. Ironically, their debt downgrade may turn out to be a good thing if it forces them to address their debt issues.

The correction hit Japan a bit too but I want to buy the dip. Ironically, their debt downgrade may turn out to be a good thing if it forces them to address their debt issues.

I'm sure glad I got out of Turkey before all this hit. It's at support now so the brave and daring might want to take a shot. I'm not sure I'm that brave.

I'm sure glad I got out of Turkey before all this hit. It's at support now so the brave and daring might want to take a shot. I'm not sure I'm that brave.

Oil service stocks broke out last week.

Oil service stocks broke out last week.

Biotechs took a big hit Friday but the etf is still above the 50 day MA and I still like the fundamental story.

Biotechs took a big hit Friday but the etf is still above the 50 day MA and I still like the fundamental story.