USDX 
S&P 500
This week we step back even further than we did last week to report on weekly price activity. A look at the 200 day moving averages of some of the primary market indices gives a broad perspective on current trading sentiment relative to predominate trend. Needless to say, global markets have been on an impressive bull run since Mar of last year, however, the bearish volatility since the beginning of 2010 and particularly that seen last week, suggests there may be a significant test of the bull trend. Many of the indices above printed values to or through their 200 day MAs on Friday. The question is: will these levels provide support and represent a buying opportunity for the bull side, or will bears force the momentum that has dominated trade so far this year. I imagine the trading algorithms will be particularly "jumpy" in the trading sessions ahead as the two sides of the market test each other for direction.
A bearish caveat is the strength in the USD. The USDX is trading well above it's 200 SMA - and a crossover of the 50 SMA above the 200 appears imminent given the current spot price trend. A crossover above is considered a strong buy signal, suggesting follow-through upside may result near-term. The rise in the dollar represents downside risk for commodities and equities as market participants trade into the dollar as safe haven from perceived riskier positions. Perceived risk is also on the rise, as the VIX has settled above it's 200 SMA for the second time this year. Of course, all the current known global economic issues will determine sentiment... and at the moment, markets are at a critical crossroads. Many analysts suggest the downside from here could be significant - but, the 200 day MA could represent a launching pad for a retest of recent highs.
So, to the question: will markets go higher from here, or lower? The answer is... yes.