Thursday, December 17, 2009

US Dollar and S&P500 Comments

Here are two charts that I find notable.

The first is the daily chart of the US Dollar. I have added the 50-day moving average. As one can see, the trend seems to be "up." This increase, if sustained, will pressure the US Dollar carry trade and that would likely have an outsized negative impact on various markets:



chart courtesy of StockCharts.com

The second daily chart is of the S&P500. The trading range from roughly mid-November until now has created a lessening of the Bollinger Bands, as shown on the chart. The width of these Bollinger Bands is seen below. As those familiar with Technical Analysis are aware, this lessening can often signal that a large directional move lies ahead in the price of the security:



chart courtesy of StockCharts.com


SPX at 1098.94 as this post is written

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