Market Commentary

The markets gave back most of their 2010 gains in one fell swoop to close out last week. There have been recent fears that the markets might correct with the onset of earnings season. Intel Corp. and Alcoa Inc. both closed negatively after their reports.


This week's earnings reports will likely be the catalyst that pushes the markets either into a deeper correction or resumption of the rally.

Despite the weakness in the S&P 500, as represented by the etf, SPY, it is still above its recent base and above its rising 20-day moving average. If SPY were to close below the $111.50 support level we could expect a further decline.

We will have to wait to see what transpires this coming week.

(Click on chart to enlarge it for easier viewing)

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