Thursday, August 5, 2010

USDX: The SET UP


The USDX may be the key to the action in the other markets as they enter the IMPORTANT Aug 8-10th Energy Date window. Watch for a reversal in the US $, which may occur coincident with the completion of the diagonal triangle in the SPX. A spike to 1135 or quite possibly 1151-1153 on the SPX, followed by a dramatic reversal, would be exactly what would portend the commencement of a violent thrust to the downside in the equity markets. STAY TUNED!!!!
The street is complacent: a perfect time for fireworks. The VIX will offer clues as to what the pros intend on doing.




Support and Resistance for August 5 2010
A close below 1115.00 would be a crack in the armor
R2 1134.44
R1 1130.84
Pivot Point 1125.15
S1 1121.55
S2 1115.86

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