Four Market Money Flow Update on Today’s Big Move

May 26, 2015: 10:19 AM CST

The US Stock Market sell-off isn’t the only big money flow event happening today.

Gold similarly is collapsing, oil is falling while the US Dollar Index breaks higher into strength.

Let’s step inside the market as we start the holiday week and pinpoint what’s happening:

As I’ve been highlighting on the blog and to Members, this rally and breakout was FAR more likely to result in a BULL TRAP as opposed to a true, impulsive breakout.

First, take a quick glance at the “Key Make-Or-Break Level for the US Dollar” update I wrote yesterday.

As I highlighted to the Membership (join us for daily and in-depth weekend actionable planning like this), the Dollar was likely to break higher into “Open Air” if it could hold above the $96.00 pivot which it did.

Today we’re seeing the index extend the gains while at the same time putting pressure on commodities.

We’re seeing these exact swings taking place, rallying the Dollar up off the $93.50 support target (with positive divergences) at the same time gold trades down against resistance on negative divergences.

Oil joins stocks in declining further during today’s morning session.

Even if you don’t trade these specific markets, keep tabs on cross-market money flow with regard to “Risk-On” and “Risk-Off” behavior (we’re seeing Risk-Off dominate today’s session).

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Corey Rosenbloom, CMT
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