Monday, November 15, 2010

US Dollar up - Stocks Market Down?

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As I mentioned yesterday "positive signals on the intraday charts should not be considered as strong signals" - we had today some positive trading, however, by the end of the day the indexes moved back down by ending the today's session flat.

Right now, all intraday time-frames (1-min, 5-min, 15-min, 30-min and hourly) an all main indexes (Nasdaq 100, S&P 500, DJI and Russell 2000) indicate negative Money Flow. This may suggest bearish trading tomorrow.

The US Dollar index has move today up and break its highs seen on October 19 an 27. Now, with some degree of confidence many trader may consider that recovery on the US Dollar is confirmed (which started on November 4, 2010). As I previously mentioned, this may push some traders to leave the stock market and move into currency and it could be additional force that may stimulate bearish trading.

The only thing that could be considered slightly positive is that Advances and declines are trending toward positive sentiment on hourly chart, yet declines are still dominant.

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