USD is on the move

As a continuation of the previous post, here you have a daily chart of DX (USD)
We expect a bullish continuation of todays move.

WATCH FOR INVERTED HS resolution at USD

Resistance levels

Finally ST target was hit on DJI

Now we are expecting some pullback down




This scenario lines up well with the resistance levels SPX is facing. Overall we think main indices will experiment some pullback down before another possible attemt to highs.

SPX big pic


SPX close up

ST target

Well, seems ES target for today was almost hit. Despite the pullback to 1066 area didn't come in first place, market demonstrated that bulls can retake control in a dime. All mkt internals, VIX and USD moves we were watching last week did line up today to support bullish case in full force.

Next steps:
I like DJIndu setup to describe next potential target. Here it goes a self explanatory chart

Possible scenario for ES today

Decision point

Gold in euros, at crux.

A view on SPX

Interesting

Interesting, all BAC,C,FNM and AIG are leaving hollow red candles (generally trend chage)

We warned you...

Finally the rally came after over sold internlas and overextended VIX move, just as our charts were pointing.

Now we expect a red Friday and ideally, the beginning of a down leg.
Will post some charts during Fri and WE.

Be careful bears....

Also watching VIX for key levels:

CIT Group Files for Bankruptcy Protection

CIT Group Files for Bankruptcy Protection

US Dollar view