Market LookBeck

MONTHLY - Neutral. Opposing tails on large hammer candles with excess to upside and then downside.

WEEKLY - Bullish. Closed weekly bar at new all-time high.

DAILY - Bullish. Continued new all-time highs with lack of stronger liquidation break. Long risk remains elevated.
Good morning traders. The inverse correlation between the U.S. Dollar (/DX) and the broad stock market has re-emerged as of late. Please observe the chart below.


The daily candlestick chart of /DX versus the daily line chart of the S&P 500 Index (SPX) is reflected on the chart above. The green arrows point to the price action of both asset classes on 07/11/13. This is the point at which a distinct inverse reaction to /DX was demonstrated by SPX. The pattern has continued since.

Looking ahead, the does not come into any technical support until the 200 day moving average (blue line), and then the prior low at 80.615. If /DX is destined to reach either of these support points, and the inverse relationship between /DX and SPX continues, further decline by /DX will provide confirmation of a continued grind higher by stocks.

Dow Jones Industrial Average	15567.74	22.19	0.14%
S&P 500 Index	1692.39	-3.14	-0.19%
Nasdaq Composite	3579.27	-21.11	-0.59%
Nasdaq 100	3031.39	-23.82	-0.78%
Russell 2000	1052.20	-1.20	-0.11%
Spot Gold	1342.75	8.75	0.66%
Crude Oil	107.47	0.52	0.49%
NYSE Overall Volume	3,115,871K	n/a	12.10%
Nasdaq Overall Volume	1,621,051K	n/a	-8.61%
NYSE Breadth	1.33 : 1	positive
Nasdaq Breadth	1.73 : 1	negative
NYSE Breadth Ratio	57.06
Nasdaq Breadth Ratio	36.69
NYSE Advancers/Decliners	412
Nasdaq Advancers/Decliners	-164
NYSE Trin	0.99
Nasdaq Trin	1.50
$VIX	12.66	0.37

ES	NQ
Value Area High	1690.50	3045.00
Point of Control	1688.50	3034.50
Value Area Low	1687.00	3030.00
R3	1700.83	3076.83
R2	1697.42	3065.67
R1	1692.83	3045.83
Pivot	1689.42	3034.67
S1	1684.83	3014.83
S2	1681.42	3003.67
S3	1676.83	2983.83