Ready for the Final Nail in the Dollar’s Coffin

The US Dollar run has looked to be over since breaking to new highs recently. It exhibited signs of failing, Topping Tails, and small body candles. But then the fall began with longer red candles and gaps on the Powershares DB US Dollar Index Bullish Fund, $UUP as shown in the chart below. The trend higher cannot be pronounced dead yet but it may put the final nail in its coffin on a break below the solid trend line at 22.30. If that happens support lower at 22.20 and then 22

may give it a chance for a recovery. But under 22 will bring it to 21.77 and then it is over. This is generally bullish for stocks, despite the recent disconnect with the US Dollar and Equities rising. Are we back to the inverse correlation? US Equities seem to say yes with the $QQQ breaking higher and the $SPY and $IWM following close behind. more fodder for the Bulls.

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