Markets had a blow off type move this week but should be coming back to earth rather quickly. While the SPX and DJI hit new highs the averages that led the markets, Transports and small caps, are lagging. Volatility is trading at support, the Yen trade has hit a wall and the markets should start responding accordingly. I'll post charts of the major US averages first. You'll will notice that the SPX appears to breaking out of it's lifetime resistance. However, the charts following should damper this apparently bullish aberration.
Gold and silver were beat down this week. The lifetime charts suggest that both could have a substantial way to go until a long term bottom is put in. In the shorter term, if a large scale breakdown does not occur, both could bounce off of intermediate term support.
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