IS THIS THE CONFIRMATION WE ARE LOOKING FOR?

All three indexes closed below their 10 day MA last Friday. This was one of the signals I was telling you to look out for. I'm still waiting for the other two signals. We did get a little spike in the VIX, but not enough to signal any sort of panic setting in. We also closed up off the lows on Friday which also gives me a little concern. There were some buyers that came in at the end of the day. I think there is a chance the market could rally up a bit next week as we approach the GM IPO (initial public offering) on Wednesday. After that, I don't see anything that will hold up the market...except for Ben Bernanke. That is why I'll still go into this week a bit cautious. I know the Fed is trying everything it can to prop up the market. It will probably take some panic selling in order to offset what he is trying to do. This is why I'd like to see a close at the lows and a bigger spike in the VIX. The dollar is continuing its rise which should put pressure on all those commodity stocks that have gone straight up. If you have gold or silver bullish trades, I suggest you take some profits or tighten up stops. This would go for energy trades as well.