several key technical factors suggested that the bears are holding the edge for a medium-term corrective mode, which is taking place within a context of a long-term uptrend. This increases the odds for a test of the important sentiment 1000 level in the S&P 500 index. The market however, is extremely oversold after Tuesday decline so we should expect at least a short-term consolidation prior to a new down-leg.
Articles tagged with: PowerShares DB US Dollar Index Bullish
based upon recent trading pattern, risk aversion is now the predominant theme. Usually, stronger U.S. dollar translates into lower prices for commodities and those lower commodity prices filter through to stock prices. Fortunately, recent uptrend in the U.S. dollar may have come to an end. And this is a short-term positive for stocks.
it’s possible that the market has finally hit a short-term capitulation point. Right now follow-through is the key. We’ll be looking for an upside breakout above resistance between the 1071 and 1083 levels on the S&P 500 index and a pullback in the U.S. dollar as a confirmation and extension of Friday’s vicious move.



