Watching the Dollar

I am going to continue to watch the US Dollar this week as the primary “tell” on the equities markets.  We have bumped up against June and August highs on the S&P, but failed there Friday.  If the USD continues to stay weak, we’ll see new swing highs on the S&P, Dow and Naz, as well as Gold and Silver.

If not and the USD decides to swing back to the upside, the indices will likely take a breather, revisit that gap at 1104 and then re-set for a move higher.

So far September has been uncharacteristically bullish, almost to a fault.  The consecutive daily win streak is causing overbought conditions, so it would not surprise me a bit to see a simple pullback to support on the S&P and then head higher.  Fed, elections, M&A, etc. all seem to support the market here, but I will use the US Dollar as proof of things to come.

Have a great trading week and trade the extremes!

Daily $ Chart w/monthly pivots


About thefront9

Independent trader with a flexible approach to the markets. Position trading, swing trading and day trading using Futures, Equities and Options. This site is intended to help others (and myself) see what I see and to stay true to the discipline of making trades at the extremes. Contrarian and TastyTrade addict! Living in Texas with my family, helping others and maybe playing some golf from time to time makes life busy and great. Add a little music and humor and that just about sums it up. Trade the extremes and manage risk.....always!
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