Dollar Up, Market Down?

The dollar has been inversely correlated since March of last year.

A reversal was identified in this report which thus far, has proved correct.

Bonds are also showing higher in the pre-market, having met a measured move (wedge) target last week.

The UUP, weekly close has price action slowing its decline, stopping and then reversing. That’s where we are now.

Weekly MACD ticked up (slightly) last week and higher open this morning, would confirm the divergence.

Market sentiment readings as reported by J. Bravo (time stamp 1:00) are literally, off the charts.

On top of that, internet scuttlebutt over the weekend shows at this juncture, absolutely anything can happen.

Having a market stance (or position) that includes possibility of power outages, banks going off-line, internet disruptions and general overall chaos, would seem to be reasonable.

In line with that, entries were made in DRV last week as shown (not advice, not a recommendation):

Pre-market activity for IYR, points to a lower open, DRV higher.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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