Last week's Relative Strength Index (RSI) charts (below) show the extremes the markets moved to on the Federal Reserve's surprise 'reflation' announcement before pulling back on expiration Friday (Bloomberg - Fed Aims to Ease; Wachovia - Implications for $1.25T Purchase).
Nevertheless, the S&P500 (SPY) finished the week higher by +1.5%, although the real stealth winner over the last four weeks has been Emerging Markets (EEM +11.1%), no doubt receiving an added boost from the US Dollar pullback (UUP -3.3%). Commodities have also seen a strong move higher during the last month (DBC +12.8%).
Week Thirteen of 2009 features Durable Goods, Housing, Gross Domestic Product and Personal Spending reports, among others, as follows:
Traders will also be reading Monday's finalized Treasury Plan with a keen eye (Bloomberg - Geithner Finishing Touches). Will the Treasury finally come through for the markets?
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