As expected, the S&P 500 corrected slightly in the beginning of the week, but succeeded in only finishing down three straight days before a rally pushed the index back close to the highs.

As for the small cap stocks, the Russell 2000 fell back to its 50-day moving average, before bouncing off its upward trendline. The small cap index has been trading sideways for a month now. Very interesting.

Europe recovered substantially at the end of the week, following news that most of the Greek bondholders will take a haircut in order to help a floundering Greece access much needed EU-backed capital. It may have put in a double top though.

The Euro looks likely to fail in its attempt to bounce off its 50-day MA. Monday will be quite interesting, as it is right at that level now.

Conversely, the US Dollar strengthened. In the long-term, the index looks to have made a bottom and seems poised to continue its strength, as it closed solidly above its 200-week MA.

Gold interestingly was flat this past week, after another drop earlier in the week. Usually gold and the US dollar act inversely to one another. The index did bounce off its 200-day MA, but with a strengthening dollar, a renewed and sustained move higher doesn’t seem likely.