still looks intact.  As I said on Wednesday, this looks like a technical correction in stocks (even considering today’s bounce), not a fundamental crisis-driven sell-off.

​With that in mind, let’s take a look at the charts on key markets as we head into the weekend.

Here’s a look at the S&P 500 chart….

For technicians, this is a classic “break-comeback” … where the previous trendline support becomes resistance.  That means today’s highs were a great spot to sell against, as it bumped up against this trendline.

Very much like the chart above, the dollar had a big trend break on Wednesday, and then aggressively reversed Thursday, only to follow through on the trend break to end the week, closing on the lows.

​On that note, the biggest contributor to the weakness in the dollar index, is the strength in the euro (next chart).

The euro had everything including the kitchen sink thrown at it and it still could muster a run toward parity.  If it can’t go lower with an onslaught of events that kept threatening the existence of the euro, then any sign of that clearing, it will go higher.  With the French elections past, and optimism that U.S. growth initiatives will spur global growth (namely recovery in Europe), then the European Central Bank’s next move will likely be toward exit of QE and extraordinary monetary policies, not going deeper. With that, the euro looks like it can go much higher. That means a lower dollar. And it means, European stocks look like, maybe, the best buy in global stocks.

​A lower dollar should be good for gold.  As I’ve said, if Trump policies come to fruition, inflation could get a pop.  And that’s bullish for gold.  If Trump policies don’t come to fruition, the U.S. and global growth looks grim, as does the post-financial crisis recovery in general. That’s bullish for gold.

This big trendline in gold continues to look like a break is coming and higher gold prices are coming.

​With all of the above, the most important chart of the week is probably this one …