“It was never my thinking that made me the big money. It was always my sitting tight. ” — Jesse Livermore

The major indices undercut its recent lows and bounced up for the week. Below are the major events which occurred this past week.

1. VIX — hits the high of 48 around the week of May 20th, 2010.
2. Bull/Bear from AAII Survey — Bullish 34.5%; Bearish 43.1%; Long-term averages:
Bullish: 39%
Neutral: 31%
Bearish: 30%
3. BP — oil spill now worse than expected; The company mulls dividends cut as Congress and President Obama continued to put pressure on BP.
4. Retail Sales — felled 1.2% for the month of May. However, ex-gas & auto, it was up by 0.1%.
5. Euro Zones — Greece, Portugal, Spain announced austerity measures to reduce debts.
6. Euro Currency — hits support around 1.197.

The week ahead:
1. Tues 6/15 — BBY 2qtr
2. Wed 6/16 — Housing Starts (May 2010); PPI; Capacity Utilization;
FDX 2qtr;
3. Thurs 6/17 — CPI; Leading Indicators;
SJM; KR 2qtr
4. Option Expiration — Quad. Expiration

We believe the market is oversold and expecting a bounce for the next couple of weeks; We are watching the DOW and S&P500 for immediate resistance at the 200-SMA;

Below are a number of charts to consider:

USD — Weekly Chart

S&P500 — 200-sma resistance at 1,109

Dow Jones — 200-sma resistance at 10,317