Stocks, Dollar and Gold.

Stocks :

Those who have been following our daily market posts before the market open, would have noticed the emphasis on the 4 day balanced profile we were talking all through last week. Since this is a weekly update, it gives a chance to project a slightly longer term picture than the intra day analysis we do everyday.

Have a look :

The profile on the left is a composite profile which is in a shape of a bell kept sideways. This always denotes a market in balance and ready for a move out. Such moves generally happen or start from the point of control (POC) of the balanced profile, something we saw early on Thursday morning.We did see a sell off from the open on Friday and a failure to hold the 5702 level marked as support in our friday's post, brought the market down a further 40 points.

But overall we are seeing value developed higher , which is a sign that the sell off on Friday was profit booking in the region of the 200 SMA, something logical and to be expected from traders who had brought near the lows 2 weeks earlier.

On Tuesday, earnings season gets underway and the market can quietly consolidate between 5673-5705 ahead of it on Monday.However any weakness, can also mean a trip through the balance area and can show 5607 below 5640 easily. Another level of support is near the 5550. Resistances for up-moves during the week will be at 5764/77 and then 5834.All the above are future levels for July.

Dollar :

The jobs report is the US brought some volatility to that market this week. We have noted the report to produce monthly highs/ lows in the index periodically.

Most of you may be aware that I felt back in May that the dollar had put in an important swing term low.With so much news filtering around QE2/ US economy etc, there is a big chance that should we break and stay below that 74.8 level marked as value area low on the chart, we should make new lows for the year.

Gold :

I'm purposely putting these last 2 charts up, as during this month Vtrender will be consciously analysing the commodity markets through Market profile.

Yes, we will have daily updates on Gold, Silver, Copper and Crude.

For the moment, Gold seems to have just confirmed a multi-month bottom last week and a further rise from here would bring in new highs for the year.

Watch this space for a daily commentary on commodities, starting this month.

Have a good weekend!