The markets extended Thursday's slide in opening action on Friday after talks concerning the auto loan package (bailout) broke off in the senate. The pressure dissipated as the S&P 500 held near support at the 38% Fibonacci retracement of the Nov-Dec recovery rally . Helping to stem the slide were reports that Treasury might be willing to use TARP funds for emergency loans for the auto bailout. A slow/choppy advance continued into midday and after an early afternoon breather the indices edged to minor new highs in late trade to end with modest gains. A relatively quieter week in terms of volume and ATR (average trading range) with choppy action leaving the S&P and Dow little changed The Nasdaq outperformed ending +2% for the week led by Semis (SMH) +10%.A bullish hammer reversal bar on the daily to end the week. A doji on the weekly doesn't resolve last week's hammer/hanging man stick.
Former support is now resistance on the 15 minute timeframe.
This week is OPEX, so the CBOE put/call ratio will be of interest as the week unfolds. Remember last month we saw put buying accelerate into expirations leading to a breach of multi-year lows.
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