Last week I pointed out the crawling action of the dollar and the mining stocks. Often this precedes a strong break either up or down depending on the setup. Both the dollar and the miners did in fact break strongly above the 50 DMA in the case of the miners and below the 30 DMA in the case of the dollar.
We now have a similar situation setting up on the Dow and S&P. Both are crawling along the underneath side of the 50 DMA. Since I think we've put in an intermediate term low the odds are probably good that this will also break strongly to the upside.
2 months ago