You may have not guessed after Thursday evening's rout on the auto rescue vote failure that the S&P 500 (SPY) was up +1.2% on the week, but indeed it was (AP - Auto Bailout Dies). However, US gains were meager in comparison to International (EFA) markets, up +7.1% no doubt assisted by continued US Dollar (UUP) weakness, down -4.4%. On a related trade, many Commodity and Bond ETFs look increasingly over-stretched to the upside (RSI-2/5 -- DBC 91/64; TLT 79/75).
In spite of the positive week, note how uneven performance was among the sectors, featuring a Materials (XLB +5.3%) and Energy (XLE +9.3%) comeback, and Technology (XLK +2.1%) outperformance at the expense of the Transports (IYT -5.5%) and Financials (XLF-5.3%).
Week 50 of 2008 holds a busy economic calendar, the least of which will not be Tuesday's FOMC policy statement. Also note that it is an option expiry week, as follows:
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