Tuesday, May 5, 2009

The dollar is the key



The dollar is testing its trendline, and as you can see in the chart, there is a support "bottom" at 83.

Should we break significantly under this 83 level, say 82 or 81, that should be the green light for equities and commodities to power higher. I will cover all my shorts and go full long on commodities in this instance.

If the 83 level holds and we move higher, as we could be forming a "W" and move to 89 on the dollar, I would expect a major market selloff.

1 comment: