Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Thursday, September 8, 2011

The UUP Dollar Index Gives the Stock Market Pause 9/8/11

Stock Market Technical Analysis

Click on above images to enlarge

Looking at the lower chart cluster, the NASDAQ and SPY & GLD ETFs we see that all three closed neutrally positioned after this afternoon's stock market profit taking.  However, the UUP's chart has market participants on edge because today it rose dramatically because of the Euro selling after the European Central Bank made negative comments.  Midday today, the UUP crossed up into this year's primary uphill channel shown with the heavy black lines.  As we got into the close, we can see that it settled back down and it closed sitting right on the line.  If the UUP pushes up from this line tomorrow the stock market will be in trouble quickly.  If it falls back down below that heavy black line then the stock rally will have its second wind. 

Whichever way the UUP is trading tomorrow in its premarket session will have a big affect on tomorrow's stock / bond direction and possibly for a number of days to come. 


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