Dave Fry is in the chart lab and on a working vacation. There will be no posts this week with the exception possibly on Friday with the release of the unemployment report. Dave's Daily will resume on September 7. Have a safe and enjoyable holiday weekend.
If you’ve followed these posts for some time you’ll know when using weekly charts to wait the week out. This is something we’ve discussed repeatedly as technical support/resistance levels are challenged or defeated.
“This is where we fight”, was a good theme marking Thursday’s close. Friday’s rally made waiting out the week right. Markets had threatened well defined support lines all week. Friday markets rallied as crummy GDP data was better than feared and Bernanke threw down the nuclear option regarding massive QE2. In fact, he said the Fed will do anything including using “unconventional measures” to prop the economy and markets. This puts bears on notice that helicopters from Kinko’s 33 Liberty St are preparing a money drop. Further, if there is a PPT (Plunge Protection Team) intervening in markets perhaps this is an unconventional measure being deployed. Conspiracy theorists would think so.
Even a terrible note from Intel they will miss the next quarter’s estimates didn’t harm markets or Intel’s price for that matter. This was how anxious bulls were to get things going their way again.
Nevertheless, most markets still closed lower on the week but the “stick save” at support was in.
Volume was near recent averages and it appears from current data breadth was 90/10 positive.

“Unconventional measures” means the Fed will play from an open book. Will they intercede in stocks? There’s nothing to prevent that but most pundits believe the Fed will be buying up Treasurys. If that’s the case why the special language as the same pundits love to parse his words.
By the end of the day Friday we still closed lower on the week. But the 90/10 breadth reading was impressive as was volume on a late day in August.
You know something, next week offers more interesting opportunities and data. Friday will lead with the unemployment report and then a long weekend to contemplate it. They never said it would be easy.
Let’s see what happens. You can follow our pithy comments on twitter and become a fan of ETF Digest on facebook.
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| Commodity | Quote | Change | Change % | NY |
| Gold | 1,252.10 | 6.70 | 0.54 % | 16:39 |
| WTI Crude Futr | 74.95 | 1.04 | 1.41 % | 16:15 |
| Index | Quotes | Change | Change % | Local |
| CRB | 271.15 | 2.64 | 0.98 % | 09/02 |
| US Dollar | 82.40 | -0.12 | -0.14 % | 09/02 |
| Index | Quotes | Change | Change % | Local |
| VIX | 23.17 | -0.72 | -3.01 % | 16:08 |
| MSCI | Value | Daily | MTD | YTD |
| Brazil | 3557.36 | -2.29 % | 7.45 % | 117.15 % |
| Russia | 816.12 | -2.99 % | 8.44 % | 105.56 % |
| India | 448.14 | -2.36 % | 7.25 % | 91.80 % |
| China | 66.42 | -0.92 % | 5.49 % | 62.76 % |