The US dollar index appears to be poised to make a break through the major support level of 76.
As we discussed earlier this month, it appears that we incorrectly called for an upswing in the dollar as a bottom appeared to be forming. If the dollar index does break through the 76 barrier, the next major support level is all the way down to 72.
The implications of this are:
- Higher levels for the S&P and Dow
- Higher Crude Oil prices with the next fib support level at $77.
- Even higher Gold prices with a blast past the March high of $1033/oz.
While we expect that the dollar will likely rebound sharply at some point in the near future (and drop the price of Crude accordingly), it seems likely that an external shock will need to occur first. One such shock could come as soon as this Friday (Quadruple Witching) or by December 18th, the next Quadruple Witching day.
Certainly, the market will be very interesting to watch over the next few days and specifically the last hour of Friday's trading.
Comments
Post a Comment