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The end of quarter is almost here, and the levitation continues. The bulls will have to break this out on thin volumes, or give up the propping effort and let prices find their level fairly soon. The outflow from retail investors continues and hedge funds are challenged by redemption requests.
The Dollar has tested key support and broken down lower. The next levels of support are obvious. It appears to be renewing its long term downtrend after the short squeeze in the eurodollar that drove it higher.
The dollar is short term oversold and could find some support around this level.
At some point the DX index needs to be reconstituted as the SDR will eventually be. The weighting to Europe and Japan are much too heavy for the current volumes of world trade and reserves.
Nice stick save on the indices for the end of quarter.
Remarkable action today as the wiseguys 'ran the stops' down to 1285, the top of the support from the cup and handle breakout, on the new holders of October futures contracts from the holders of in-the-money calls in yesterday's options expiration.
The bears 'got stuffed' badly as their raid met heavy physical buying and strong hands who held their positions in the futures markets. The raid fizzled, and turned sharply around with gold running almost the entire range of the trend channel, finishing at yet another new high.
