In the UUP weekly chart there seems to be a Descending Triangle Pattern in the works which is a bearish formation. That being said this is the weekly chart so I don’t expect UUP to break below $22 range for months and years to come. Short Term UUP has resistance at the 50 week moving average (23.43) and if it is able to break through it has a better chance for a swing to the expected 25 area.
As with the UUP short term view, $USD also is stuck just below its 50 week moving average of 80.42 and a break and hold (of the weekly) over that resistance would put the dollar index on a better position of heading back to the top of the pattern which is around 88 area.
If we break out of the resistance zone more rapidly then I call a market top late January-February 2011. It could come at the current highs or the market could make one last push for $1300 (since the moves aren’t 100% mirrors of each other). My conservative guess if I was forced to make one would be a correction to 1030-1075 area. That’s around 16-19% correction from the current highs.
There's another chart and a lot more info at my blog. I'm not trying to promote but it benefits me to have just a few secrets for those that have made it this far down the post.
Source: The Freak’ing Market Nears The Top ($SPX, $SPY, $USD, $UUP)
Thanks and I'd love any comments or if we can start a discussion that would be good too.
K-urrency the InvestingFreak
As with the UUP short term view, $USD also is stuck just below its 50 week moving average of 80.42 and a break and hold (of the weekly) over that resistance would put the dollar index on a better position of heading back to the top of the pattern which is around 88 area.
If we break out of the resistance zone more rapidly then I call a market top late January-February 2011. It could come at the current highs or the market could make one last push for $1300 (since the moves aren’t 100% mirrors of each other). My conservative guess if I was forced to make one would be a correction to 1030-1075 area. That’s around 16-19% correction from the current highs.
There's another chart and a lot more info at my blog. I'm not trying to promote but it benefits me to have just a few secrets for those that have made it this far down the post.
Source: The Freak’ing Market Nears The Top ($SPX, $SPY, $USD, $UUP)
Thanks and I'd love any comments or if we can start a discussion that would be good too.
K-urrency the InvestingFreak
