Steve, thanks for the UUP chart. I was looking at the
dollar and whipping up a few charts while you were putting it up.
In the last few days we've had a disconnect between the dollar and
inverse relationship to the market (circled) in the UUP:SPX chart.
But in the last year, those disconnects have been very brief. So I
think the dollar is still the key, and it's unlikely that the
market will go a lot lower until or unless the dollar rallies, so
as far as I'm concerned, the dollar is still the key.
When I look at the longer term chart of the dollar, it looks
like the dollar is going to have to find support soon around the
74.25 level soon (which would still allow for an A-B-C- up), or
it's likely to retest the recent lows -- and given how close we are
to the '08 lows, I wonder if it doesn't have to test those as
well.
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The Dollar
Posted by puma on 3rd of Jun 2011 at 01:20 pm
Steve, thanks for the UUP chart. I was looking at the dollar and whipping up a few charts while you were putting it up. In the last few days we've had a disconnect between the dollar and inverse relationship to the market (circled) in the UUP:SPX chart. But in the last year, those disconnects have been very brief. So I think the dollar is still the key, and it's unlikely that the market will go a lot lower until or unless the dollar rallies, so as far as I'm concerned, the dollar is still the key.
When I look at the longer term chart of the dollar, it looks like the dollar is going to have to find support soon around the 74.25 level soon (which would still allow for an A-B-C- up), or it's likely to retest the recent lows -- and given how close we are to the '08 lows, I wonder if it doesn't have to test those as well.