The chart of the week is the S&P weekly index.

Now this is not a chart that I am very comfortable about discussing as I am not an equity analyst. That being said, I am paid to analyze commodities and this chart is a piece of pattern that we are watching very closely.

My apprehension comes from the charts, most notably, the S&P, crude oil, the dollar and commodity indexes. First the dollar has appeared to make at least a temporary bottom. At the same time, crude oil and the commodity index have pulled back, not surprising and certainly understandable given the appreciation we have experienced in these markets in 2009.

Lastly, the chart formation below in the S&P index suggests that a modest to notable correction may be near for the equity markets…at least we’re due for one. Chartists look for confirmation between charts and that’s what fuels my uneasiness as these charts all seem to be pointing to a correction in the equity and commodity markets.

To be honest, I’m not smart enough to call for such a correction, I’ll just let the charts do the talking.