I thought today we were going to breakout above resistance, and prove my thesis that I posted yesterday wrong. As the 10am timeframe rolled around, SPY resistance was tagged, and from then, the market just rolled over... (see that big tail?) That means I still stand by my thesis that we're going to have a small downdraft to 108, unless we somehow are able to clear the 111 resistance tommorow, and confirm it the day after... (somewhat unlikely given today's price action)...
USO looks likes it's ready to hit the lower channel and 50 dma of 38.50. From then maybe we'll have another inflationary rally
The dollar certainly declined, but from trading on the UUP, it looks like this is as low as it will go in the very short term. Ultimately I still think the UUP has to trade to 2008 lows of 21.90, before we have some sort of significant rally in the dollar, and a sizable correction in the SPY.
No comments:
Post a Comment