061209: The major currencies did little this week as too the interest rate market. The S&P and Dow have confirmed their recent breakouts and now suggest that equities could be moving into a blow off top stage. This may culminate in a dramatic move to the upside. Unfortunately (as time tested technicians) we know that at some point we will need to come back down and test the winter '09 lows. The farther we move up without a serious counter trend test, the more severe the correction ultimately will be. Keep in mind, there are gaps on the S&P 500 right near the lows. Very interesting times indeed for equity investors. Elsewhere, most of the recent trends remain well intact with a bit of weakness coming in on Soy Oil and what looks to be a blow off bottom potentially forming in Pork Bellies (refer to this week's spotlight for more on that). We may be nearing a seasonal peak for the grains and meats so those involved be careful.
That's all for this issue of the WCTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com
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