Dollar pause at resistance….NYSE on support-

Posted by Chris Kimble on 06/16/2011 at 11:52 am; This entry is filed under Dollar Update, NYSE Composite, Uncategorized.

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The Dollar broke from a bullish falling wedge of late.  Shared this Dollar action was about to take place, before it did (see post here) , creating numerous challenges for stocks and commodities.  The rally in the Dollar has taken it up to falling resistance and the fib 23% level at (1).  A natural place for the Dollar to take a breather.

 If the Dollar does take a breather, one could see the NYSE catch a little bounce due to the support at (2). 

Key strategy ... be aware/positioned for the ripple effects if the Dollar blasts above the resistance at (1)!       A further advancement in the Dollar increases the odds the NYSE will break support!

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5 Comments

  1. belsha June 16th, 2011 at 12:24 pm

    If the NYSE rallys back to 8600, would we have a nice Head&Shoulders with a target at 7400, a well tested support from Dec ’10 lows and Jan ’10 highs?

  2. Chris Kimble June 16th, 2011 at 1:27 pm

    Belsha…great eyes and I would agree with you….Potential H&S already in place and this support line is the neckline??? Look out below?

  3. belsha June 16th, 2011 at 2:19 pm

    Funny, a smaller H&S seems to have already happened, with april head and march and may shoulders, with a 8200 neckline, we would be right at target here! I just wonder if similar patterns show up on the SP or the Dow.

  4. InvestorX June 16th, 2011 at 2:53 pm

    @ belsha good call ..the fight is on between Dollar Resistance, and Equities Support but also be aware there is another Head & Shoulders with a Neckline at ~ 8250 with a target below the present Support line at(2)which is another fight to watch

  5. Chris Kimble June 16th, 2011 at 5:23 pm

    The lines dating back to 1987 and 2000 continue to have my attention…

    http://blog.kimblechartingsolutions.com/2011/06/tug-of-war-short-term-support-vs-long-term-resistance/