By Gareth Soloway on September 28th, 2010 12:10pm Eastern Time
Just as the markets were hitting their lows of the day at $113.18 on the SPDR S&P 500 ETF (NYSE:SPY), the 'powers' that be started to drop the U.S. Dollar quickly. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) dropped from $23.07 all the way to $22.87. The coordination of this drop makes one think, there is more at work here than just normal market activity. As the Dollar collapsed, the markets rallied sharply higher off the lows and have since turned slightly positive. An ugly day was avoided and the markets are sitting pretty. To gain more insight, analysis, guidance, swing trades and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
It might be intervention but it would be on a regular schedule. The 28th drop is the same as the 24th drop, stick a ruler on the chart and it matches all the way back to the 13th where it was support. Check the 14th and it was support but again we see a large drop and this is failure of this trendline, 28th it had become resistance causing dollar to drop.
On the market itself, there is major reason for it to fail here but it is basically the dollar proping it all up. The dollar is falling faster then the spy is rising. If the dollar keeps on down, spy resistance wont exist anymore I guess.
Im told dollar is due to rise higher then 90 after falling no lower then 74, Ive no idea except markets dont move in just one direction https://www.youtube.com/watch?v=5o764b3urRg
Comments
On the market itself, there is major reason for it to fail here but it is basically the dollar proping it all up. The dollar is falling faster then the spy is rising. If the dollar keeps on down, spy resistance wont exist anymore I guess.
Im told dollar is due to rise higher then 90 after falling no lower then 74, Ive no idea except markets dont move in just one direction
https://www.youtube.com/watch?v=5o764b3urRg
http://www.ft.com/cms/s/0/9fa5bd4a-cb2e-11df-95c0-00144feab49a.html...