Our major trend indicators remain negative on the equity markets. We are also looking at the S&P 500 at the top of the Donchian trading channel. I believe that was the reason for yesterday’s sharp move down.
In order for this market to really get going on the upside it needs to clear the highs of 1230 on the S&P 500 in a convincing fashion.
There is so much confusion in the marketplace right now.....Interest rates, mortgage foreclosures, contagion in Europe and the occupation of Wall Street. The markets always have numerous conflicting thoughts, but eventually the market figures it out and goes the way it wants to go. Our job here at MarketClub is to recognize those changes and alert you to what we are witnessing.
Let's look at todays action in the U.S. Dollar........
The dollar index moved to a five day high today before succumbing to selling pressure. We would not be surprised to see a rally back to the 78.50 area. We continue to be friendly to this index and want to hold long positions with money management stops. The Dollar index is coming from a large energy field that is capable of carrying it much higher. Long term traders should maintain long positions with the appropriate stops in place.
The December U.S. dollar index closed down 31 points at 77.11 today. Prices closed nearer the session low today. Significant near term chart damage has occurred recently to suggest a near-term market top is in place.
Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = – 55
Now, let’s go to today's video and look at the 6 major markets we track every day.
Adam Hewison
Check out Today’s MarketClub Trading Triangles
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