Dead Cat Bounce … or, Was It?

8:31, a.m. EST

The Usual Suspects, Tell Us:

Higher dollar was just a ‘dead cat bounce’.

We’ve already laid the ground work for dollar reversal here and here.

A reasonable expectation, reversal or not, is for the market to come back and test the support level.

Currently, in the pre-market, UUP is trading at 24.21 – 24.22, basically unchanged.

Since the divergences are taking place on the weekly chart, if there’s a reversal, it’s likely to be a sustained move.

For today, watch for UUP, to come back and test.

After that, a move higher may indicate sustained reversal is underway.

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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