Tuesday, July 23, 2013

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