An awesome dollar-crumbling-induced rally today means too many setups to include in today's blog post. The SPY was right out of the gate. In case you needed more clues beyond the strong bar with volume above the Previous Day's High, the markets set up all morning with these Resistance becomes Support (RbS) levels.
Amazing how far we've come without any significant profit-taking. Today's high was on lower momentum, but one lower momentum reading does not a top make.
Next resistance level looks like it could be the psychological 1000 mark for the S&P, which is also right near a 38.2% Fib level.
Two matters which could produce a retracement in the near future are the Dollar and Treasurys approaching significant levels of support. Yields were up pretty big today as the Treasury attempts to entice buyers to support our ginormous debt.
If the Dollar index breaks down from here we may be on the road to a triple top in the S&P ;)
Just wanted to include this comparison of the S&P and the U.S.Dollar Index on a monthly basis. Keeping in mind the '03 - '07 rally was in large part correlated with the breakdown of our dollar.
Amazing how far we've come without any significant profit-taking. Today's high was on lower momentum, but one lower momentum reading does not a top make.
Next resistance level looks like it could be the psychological 1000 mark for the S&P, which is also right near a 38.2% Fib level.
Two matters which could produce a retracement in the near future are the Dollar and Treasurys approaching significant levels of support. Yields were up pretty big today as the Treasury attempts to entice buyers to support our ginormous debt.
If the Dollar index breaks down from here we may be on the road to a triple top in the S&P ;)
Just wanted to include this comparison of the S&P and the U.S.Dollar Index on a monthly basis. Keeping in mind the '03 - '07 rally was in large part correlated with the breakdown of our dollar.
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