Weekly Market Update

After last Friday's selloff in the DOW, we recovered most of the losses this week. MSFT moved up a huge 4.5 points, the biggest move this company has seen in many years! On the flip side, Merrill Lynch reported a huge $8 billion write down for this past quarter due to sub-prime issues. The sub-prime debacle isn't over yet folks.

This coming week we have the Fed meeting. This will probably be the catalyst to confirm whether the market starts a new up trend or down trend; we could also see some action in the US Dollar. Everything is moving up (DOW, Bonds, Oil, Gold, Euro), and this isn't normal; something has to give!

Right now there is no clear sense of direction in the stock market, so be careful. It is right in the middle of what could be an ABC pattern up or down. I suspect we might move up to the 1540 level again on the S&P 500, and then start heading back down.

Meanwhile Oil hit $92 this week, Gold hit a 28 year high, and the US Dollar sank to a new record low.

Reuters Financial Videos