This morning we are seeing the US Dollar index move higher retesting a
short term breakdown resistance level. What this means is that the dollar
fell below support and is not slowing drifting back up to test the breakdown
level. As we all know once a support level is broken it then becomes
resistance. So if that holds true with the current move in the dollar we
should see stocks and commodities find a short term bottom and continue
higher today or tomorrow from the looks of things.
Gold has been pulling back the past couple trading session on light volume
which healthy price action. It has done the opposite of what the dollar did
above. Gold broke through a key resistance level and is slowly drifting back
down to test the breakout level to see if it is support. If so then gold
should continue higher in the coming days.
Both silver and gold miner stocks are lagging he price of gold. They have
yet to break through their key resistance levels. That being said it could
happen an day now as they have both been flirting with that level for a
couple trading sessions now.
Crude oil continues to hold up strong and is headed straight for its key
resistance levels without any real pullback. Chasing price action like this
is not something do often because risk: reward is not in your favor. I am
staying on the sidelines for oil until I see a setup that has more potential
and less risk.
The equities market remains in a strong uptrend at this time. I do feel a
1-3 weeks pause/pullback could take place at any time but in the grand scheme
of things we could be only half way through this runaway stock market rally
as noted in the video.
The equities market is going to gap down this morning which is typical in
a bull market. Remember. in an uptrend the stock market tends to gap lower at
the open and close higher into the close. And it's the opposite in a down
trend with stocks gapping higher and sell off through the trading session.
Watch my detailed video analysis for this week: http://www.thetechnicaltraders.com/ETF-trading-videos/
