After the Treasury announcement this week, the dollar index traded sharply lower. Along with this, oil and commodity prices moved higher as should be expected.
The market is currently in a downside range expansion. The sharp trade below the blue line (two standard deviations down from the mid point) indicates that the market is oversold and due for a correction or consolidation on a short term basis. If the dollar index fails to regain the 84.00 level and hold, it would be a major negative. The trend is turning down.
The longer term chart of the Dollar Index indicates a major double top with an extended right top that found no new buyers. This is potentially extremely negative. We will put that chart up tomorrow with some analysis.
Subscribe to EF Hutton via Email
