Kevin over at Kevin's Market Blog said it best on his Dow Theory watch; Dow followed Transports higher. While the Semiconductors did their bit to support the Nasdaq 100 with a breakout of their own: But there is the question as to what volatility (and fear) will do now there is a test of the 200-day MA? Will profit takers emerge? Or will the 200-day MA turn from support into resistance, thus supporting a more substantial rally than previous corrections in this indicator have given?

Monday's quiet trading did turn up one key positive; the back test of former resistance-turned support of the Dow Jones Transportation Average ( $TRAN ). The move was accompanied with a bullish hammer on higher volume, giving two more ticks in the bull column. Stochastics are on a 'sell' from overbought levels, so it could take a test of the 50-day MA to work a more solid bounce and reset stochastics. This strength should reflect itself in the Dow index with a break of January-April resistance. Positive money flow suggests accumulation: Can the semiconductor index be a proxy for the Tech averages? The semiconductor index is loitering around its 50-day MA having traded sideways since January. The relative difference between the 50-day and 200-day MAs has narrowed from its max 20% deficit suggesting the worst is behind this index. But unlike the Nasdaq 100, it has failed to break past its 50-day MA. Technicals are neutral-to-bearish so there is little indication that it cou

Dr. Joe starts with his weekly review: Interesting to see a new high in the FXE, but no confirmation with a new low in the USD? Bullish divergence for the dollar?: Has Health Care hit support? A fairly ragged looking chart. Ted Burge cast his eye on the NYSE's 20-day and 50-day MAs. Horizontal support at 8,671 also within range: Maurice Walker has no weekly commentary, but his Streettracks Gold Tr (GLD) nicely shows the breakdown of one support level, but the presence of a stronger one nearby. Double top from here anyone? His Weekly Major Trendline is perhaps the best entry point for bulls: He has a good piece on the ADX: The acclaimed author, Dr. Alexander Elder of Trading For A Living fame, recommends taking a trade once both the +DI and ADX lines are above the -DI line. This would trigger a trade once the ADX line crosses above -DI, assuming that the +DI has already successful made the cross. Dr. Elder also suggests getting long if the +DI line is on top and the ADX has moved

Is there value for foreign investment in US markets? Given I now enjoy the benefits of earning in Euros I can look at my next trip to the U.S. (and corresponding shopping!) with the eagerness of someone getting $1.58 for each Euro I convert. Or this can be put another way, I can get 58% more U.S. company stock than someone paying for that same stock in hard earned dollars. So to buy Apple (AAPL) in Euros would cost me 88.76 euros (a veritable bargain), or I could get Google Inc (GOOG) at 281.06 euros, and maybe an Apple 32GB iTouch at a cool 300 euros. This relationship is perhaps best represented by pricing the S&P in Euros. In Euros, stocks are trading at levels last seen of late 1998, and very close to the lows of 2003. It may take a year for a discernable market rally and/or rising dollar/weakening euro to emerge (both of which would be considered bullish for U.S. equities), but for outsiders looking in there is real value in U.S. equities. Don't let the bears blinker you o

*** Update *** Looks like Yahoo have reversed that decision. Date and time stamps are back. But Google still has its problems. *** *** With Yahoo screwing up with one of its better features (finance pages) you would think Google could step into the breach and steer people their way. Unfortunately, Google has its own niconpoops in charge of Google finance: D'oh!

Yesterday's consolidation didn't change anything on the broader picture. Monday's bullish gains still hold as dominant until proven otherwise. Today's post looks at what is going around the Blogosphere. Timothy Sykes offers his usual low key assessment on Yahoo!s decision to removed date/time stamps from its posts. I cannot agree more with him... dumbasses. Maybe this is a strategy to scare off Microsoft. One of my favorite morning stop-offs is Maoxian's del.icio.us links . Abnormal Returns is my first port of call to get a working list of articles to read for the day. TraderMike is my second, although he is on vacation. And Charles Kirk when he publishes his linkfest (also on vacation). 24/7 WallStreet hvae the 25 most valuable blogs . Wouldn't mind a slice of that pie, although somewhat depressing to see a (hypothetical) range from $860,000 to $150 million across the 25. Oh to be numero uno on that list. Datawink has an excellent chart analysis tool. Bulli

The relationship between the Yen and the S&P and the relevance of the "Yen Carry trade" has been described expertly by the ETF expert From a technical perspective, spikes in the relationship between the Yen and S&P mark bullish reversals for the S&P. But the degree of the spike may indicate the strength of this bottom. The current spike is of comparable measure to spikes of late 1998 and 2001, but didn't reach the extremes of late 2002 and early 2003. If markets are in the early stages of a cyclical bear market within a secular bear market, then the possible outcome for the current bottom would favor the 2001 scenario over the 1998 one. If this was the case the next rally could take the market back to 1,450 (prior price congestion) before turning down towards the next support level at 1,150. This whole process could take 12-months to evolve. But in the short and intermediate term (next 3 months), bulls should have control.