S&P 500 Top Closer to Confirmation, Pointing to US Dollar Gains

Jason Rogers

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THE TAKEAWAY – The S&P 500 continues to carve out a major Head and Shoulders top, hinting at gains for the safe-haven US Dollar. Gold is breaking higher while oil is testing key support.

S&P 500 – The formation of the Head and Shoulders top we initially noticed two weeks ago and have been monitoring since is proceeding as expected, although importantly there is no confirmation of the setup until prices pierce the would-be neckline at 1267.30. Immediate support lines up at 1308.24, with a break below that exposing 1296.34. Alternatively, a break above near-term resistance at 1320.15 targets 1334.87.

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US DOLLAR – Prices are bouncing from support at the lower boundary of a Triangle consolidation pattern, eyeing resistance at the formation’s upper boundary now squarely at the 9700 figure. A break above this exposes critical triple top resistance at 9742, with a subsequent piercing of that level amounting to a meaningful upward trend change.

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