With the market performance being so closely linked to the dollar and given the intraday reversals in metals and mining stocks today, I thought it would be interesting to have a look at the dollar. The dollar bounced off long term support (see the weekly chart in the end) on Friday and has moved up nicely since then. This move is coming off a positive MACD divergence. MA(50) has acted as resistance in the recent past and another test of it looks to be on the cards. It currently stands at 78.98. So, watch out for the MA(50) for an idea of where the dollar, and quite possibly the markets, are headed in the short term.
And here is an updated weekly chart of the one that I had posted last Friday. As it can be seen, the dollar has bounced nicely off long term trendline support.
Here are my thoughts on today's market action and the strategy for the next few days.
Take care and good luck!