Thursday, November 19, 2009

Can The Dollar Push Thru?

1:20 UPDATE: SPX Dollar Chart - See the pink support lines on the dollar? Also all the massive divergences on the indicators.
12:30 UPDATE: Testing support. 60m indicators pushing hard south, but dailys are strong north. Not sure if it breaks out here or continues to consolidate in the yellow wedge.

DXY 60m - those trendlines and the 60m indicators say this may be it. Sure would make a nice descending triangle.

DXY daily - says she runs to the upper trendline based on the indicators, the strong move and the divergence under RSI. NOW - WHAT I WANT YOU TO NOTICE is look at all the big green candles and the days after - 4 have gaps down and one a gap up - the one with a gap up is a set up very similar to this with MACD and S Sto bull cross following a divergence in RSI. I do not expect the upper yellow TL to go at this time. If it does the P3 chatter will be flying.