The Air Down There!

How is the air down there? Well I must say that the S&P did have a great start to the day, but then trust Ben Bernanke to come through and wreck that. The man got up shaking, his lips quivered, and we all know he was lying through his teeth, but this moron caused the S&P to sell off and wipe out its globex gains by the close. LOL. So a nothing nothing day really!

Looking at the chart, we have still broken the rising channel, and we seem to be forming a small consolidation pattern down there. Is this just a bear trap where we trap traders short and then shoot higher to the moon? or is this a bearish flag (a pattern that normally precedes lower prices) like some traders are seeing.

This market requires a bit of patience, but my thoughts are that even though we have broken the upwards channel the market is still holding its head above water for now. A break below the smaller line on the chart = bearish! But if the buyers take charge and take us back into that bigger rising channel, that will be very very bullish. But for now, we just need to be patience and wait. 

USD

Here we are on the USD. We have been talking about it being all about the dollar recently. The QE3 program is not good for the USD, but no matter what the news brings we must keep watching the charts. Right now the USD is at a make or break area. It is touching the falling resistance line that goes all the way back to JULY 2012. This is a very important area and the next few days are also important as a break will be bad for the US indicies, but hitting this line and then seeing bears come back will actually be very bullish for the indicies. But it is all about the USD right, so we need to be patient and watch as the week is young. :-D

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