Stock Market Update Mid Day - August 3, 2009

The market is currently up. The Dollar is down. If the Dollar continues down then equities, energy and gold will continue to rally.

Stock Market Weekend Charts

Here is the update for the S&P 500 and the double inverse SDS. I have developed my own set of technical indicators for the markets. The green line is a Frye Indicator and it is used to indicate a general topping or bottoming short term cycle for the market. The blue line is a modified cash flow. The volume chart has an inverse indicator relationship to the market with the exception of the inverse ETF's like SDS. As you can see the market is in a short term topping action. This does not mean that it will not move higher ... note the blue line ... the cash flow still has more room to move up before this rally has topped for the short term.