Two points of yesterday's thesis survived today's price action. The USD hung in at the 97.00 - 96.00 level while oil rallied but stopped short of penetrating its first daily resistance level.
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| DXY Daily Chart |
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| Oil Daily Chart |
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| SPX Daily Chart |
Buyers, as you can see (above) from virtually zero sellers in three strait days of trading, have been extremely sure of themselves. But indexes have to meet a much higher standard, compared to other products, before we can stop selling rallies and start buying dips. In the case of SPX that "standard" is a weekly close above 2130; a new record high and resumption of the uptrend.
Considering weak economic fundamentals I think such new highs would have to involve QE, another zero interest rate policy, or both. In other words, I don't see how, at peak supply, something like OPEC claiming to curb production is going to push all asset classes into new highs. What are we, a single resource global economy now?
Question or comment below.
Happy trading.
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