The intermarket relationships are reasserting themselves as expected, as we’re seeing weakness in the US Dollar Index and strength in Commodities – we recorded fresh 2009 lows for the US Dollar Index and fresh highs for Crude Oil, the S&P 500, and mere points away for 10-Year Treasury Yields and Gold.
As requested by a few readers, I wanted to take a quick cross-market look at the daily charts of the US Dollar Index, Crude Oil ($WTIC), and Gold. Let’s see what may be the next major move in each of these inter-related markets. US Dollar Index: Let’s start with the US Dollar Index and make…
Last week, I mentioned that the US Dollar Index was “Pulling Back into the Cradle” to form a Cradle Sell Signal and price did inflect down off that level. Let’s take an update and see how that structure formed and what might be in store now. US Dollar Index Daily: The “Cradle Trade” forms when…
The US Dollar Index is on the balance of a precipice, the resolution of which will determine its short-term structure. Right now, the Dollar Index has formed and now retraced back into the Cradle Crossover Zone. Let’s see all this on the Daily Chart: Until recently, the Dollar was in a strong uptrend, which was…
Seems like this week I spent a good deal of time discussing Gold and Crude Oil this week, so let’s look at a related market that normally trades inverse these commodities – The US Dollar Index. It might give us clues as for what to expect in these markets. US Dollar Index Daily: I wish…
To the surprise of many, the US Dollar Index – once feared to be in a hopeless downtrend – has resurfaced to new life and is forming a potentially bullish continuation pattern on strong technical strength. Let’s look at the daily chart to see these developments. US Dollar Index: Daily Chart Price bottomed in July…
Is the US Dollar Index in the process of bottoming? Has it formed one already? What does this mean for the overall market and for commodities? Let’s look briefly at the charts. First, the ‘structure’ of the Daily US Dollar Index: Notice the price making lows at $71 but always failing to exceed those lows. …
The headline from last week will be the sudden surge in crude oil prices, but let’s take a moment and view this development along with the implications for the US Dollar Index. Crude Oil Prices: This is an excellent example of why it’s best not to try to anticipate market tops or bottoms. It also…
Some traders imagined new life for the US Dollar Index, and while that may be the case long-term, in the short-term, the Index has created a false breakout only to roll back to the downside and could make new lows. Let’s look at the daily chart: While a positive momentum divergence did precede the breakout…
The US Dollar Index staged an impressive rally on the daily charts, but is currently failing to surmount resistance via the strong 20 period moving average on the weekly chart. Notice how the falling 20 period moving average (exponential) has served significantly as overhead resistance, thwarting any rallies ever since late 2006. Price recently tested…