Weekly Summary and Conclusion, week ended 28/1/2011

1. TRENDS:

XJO: long/medium-term - up.

XJO: short-term - down

S&P 500: medium-term - up

S&P 500: short-term - down

Nikkei: short-term - down

Shanghai: medium-term - down

Bombay: medium-term - down

Copper: Sideways consolidation

Ozzie Dollar: Sideways consolidation

Australian Relative Strength XAO/SmallOrdinaries: negative for the market.

VIX: Short term - up. Bearish

2. Anti-Inflation measures likely in many countries in Asia, Europe, South America. May constrain growth. This could be a long-term positive for economic confidence.

3. Social upheaval in some Middle Eastern countries. May spread.

4. Ben Bernanke’s QE2 program will probably sustain the American market in the long term.

5. Seasonalities for February in 3rd Yr of Presidential Cycle favour the upside.

6. Near-term Support on the XJO lies around the 4700-4720 area. That may hold up any falls.

7. XJO currently at 4775.

8. Major Support and Resistance for XJO: Above 4800 - bullish; Below 4583 - bearish.

9. Friday’s move down on the American market on Friday night was so dramatic that a bounce on Monday or Tuesday is likely. What happens after that will be most important.

10. Next Week: The probabilities for a down side correction have increased considerably.

11. Any correction is likely to be muted because of Bernanke’s money supply and the strength of the Presidential Cycle in the 3rd Year.