G20 Cheers Market

The cooperation of world leaders at the G20 meeting with a commitment of 1 trillion dollars in stimulus, combined with the decision to relax the mark to market rules cheered the markets yesterday.  This morning, the non-farm payroll numbers came in pretty much in line with expectations.  Oil and natural gas continue to trade in ranges.  Gold and silver are both trading down, continuing the slide from yesterday.  Gold actually broke below the 50 day moving average.  The question is, will it continue to correct further.

 As of this writing, futures are positive and the DAX is positive, indicating a positive open.    The market condition scans remain neutral, giving no indication on short term market direction.    Once again, the institutional scan and the RSI scan show very strong numbers, indicating that the institutions are back in the market at least for the last two days.  This is what really drives the markets up.  The market bias indicators are showing a preponderance of bearish indicators, indicating we are due for a statistical correction over the next one to five days.

Index	Change	%Change	Level	Phase
TSX	+131.32	+1.47%	9073.14	Recovery
DJIA	+216.48	+2.79%	7978.08	Recovery
Nasdaq	+51.03	+3.29%	1602.63	Recovery
SP 500	+23.30	+2.87%	834.38	Recovery
Russell 2000	+21.03	+4.90%	450.19	Recovery
NYSE	+181.34	+3.57%	5267.10	Recovery

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: moderate

 Primary Trend: Remains down to sideways

Sector	Phase
Consumer Staples	Bearish
Healthcare	Bearish
Technology	Recovery
Utilities	Bearish
Energy	Bearish
Financials	Recovery
Industrials	Bearish
Materials	Recovery
Consumer Discretionary	Recovery

Source: Telechart