A few charts as we observe the global roller coaster. Moves that would tend take weeks if not months are now being completed within days. Whatever the direction, momentum is rapidly accelerating.

Regards - VHF

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Gold was the star performer last week. A “flight to safety” in currency markets included the purchase of gold. Gold broke resistance at $1,226.40 to reach an all time high. It gained $24.10 U.S. per ounce. Short term momentum indicators are overbought, but have yet to show signs of peaking.

The Philadelphia Gold & Silver Index gained another 6.94% last week. Short term momentum indicators are overbought, but have yet to show signs of peaking.

Silver added another $0.94 (5.1%) last week and broke resistance at $19.45. Short term momentum indicators are overbought, but have yet to show signs of peaking.

The U.S. Dollar gained another 1.64 last week and closed at its high on Friday. Intermediate trend is up. It remains above its 50 and 200 day moving averages. Short term momentum indicators are overbought, but have yet to show signs of peaking. Currency flows are in a “flight to safety” mode.

Conversely, the Euro lost another 3.98 last week and closed at its low on Friday. Support levels at 125.01 and 123.94 were broken on Friday. The Euro closed at a four year low. Intermediate trend is down. The Euro trades below its 50 and 200 day moving averages. Short term momentum indicators are oversold, but have yet to show signs of bottoming.

The Canadian Dollar added 0.78 last week. Intermediate trend remains up. Support is at 93.15. Resistance is at 100.51. Short term momentum indicators are mixed.

The S&P 500 Index gained 24.80 points (2.23%) last week. Intermediate trend remains up. Resistance is at 1,219.80. Support is forming at 1,065.79. The Index found short term resistance near its 50 day moving average. Short term momentum indicators tried to recover from oversold levels last week, but the recovery quickly faded on Thursday and Friday.

The Dow Jones Industrial Average gained 239.73 points (2.31%) last week. Intermediate trend is up. Intermediate resistance is at 11,258.01. Support is forming at 9,869.62. Short term resistance has formed near its 50 day moving average. Short term momentum indicators tried to recover early last week, but faltered on Thursday and Friday. Strength relative to the S&P 500 Index continues to improve.

The TSX Composite Index gained 322.54 points (2.76%) last week. Intermediate trend is up. Intermediate resistance is at 12,321.76. Support is forming at 11,422.73. Short term momentum indicators recovered from oversold levels, but faltered on Thursday and Friday. Strength relative to the S&P 500 Index remains positive.

The CRB Index gave up another 2.77 points (1.0%) last week and currently is testing support at 256.89. The Index closed near its low on Friday. Most of the weakness occurred in the energy sector. Short term momentum indicators are oversold, but have yet to show signs of bottoming.

Crude oil lost another $1.47 U.S. per barrel (2.0%) last week and closed near its low on Friday. Support at $69.50 is being tested. Short term momentum indicators are oversold, but have yet to show signs of bottoming.

Unleaded Gasoline was unchanged last week. Short term momentum indicators are oversold, but have yet to show signs of bottoming.

Copper was virtually unchanged last week. It is trying to find support near its 200 day moving average. Short term momentum indicators are oversold and trying to bottom.

The yield on 10 year treasuries was virtually unchanged last week. It remains locked in a 12 month range between 3.26% and 4.01%. Short term momentum indicators are neutral.

The VIX Index plunged from 42.15% on Friday May 7th to 24.30% on Thursday and rose sharply to 31.24% on Friday when uncertainties about Europe and financial regulation in the U.S. returned.

Historically, VIX above 40% has signaled a buying opportunity after the move has been completed. However, evidence, that the current move above 40% is over, is lacking. Please be patient.