After yesterday's rally, the sellers returned in full force today, driving down stocks and sending the US Dollar to a fresh 12+ year high as it soared almost 1% higher against a basket of depreciating currencies. I'll get into the US Dollar and the basket of depreciating currencies later, let's look at the market, where it could be headed, and what we can do about it.
You know the market is in rally mode when a washed up mining equipment, diesel and natural gas engine, industrial turbine and diesel-electric locomotives maker like $CAT finishes the day with an attractive gain.
Stocks posted a sharp rally and found it's footing after the pull back from record highs. The US Dollar index took a break today after breaking into triple digits for the first time in 12+ years, something I thought would spark a rally in the market.
From last night's recap:
I'd prefer to remain calm and trade on. But I do think there is a chance we could witness a December 2014 like price recovery. I talked about this before the market opened in today's video. Certainly something to keep in the back of your mind as the week closes tomorrow:
Stocks continue their recovery from the frenzied panicked selling of several weeks ago. I still see broken charts but the spectacular rally that we've seen off recent lows has repaired quite a few. Below I have a few charts up with key support, resistance lines. As far as where the market is headed going forward?
After 5+ years of an amazing bull market, with stocks soaring to record highs, this weeks action, from a technical perspective, could be marking the top. As 2014 progressed we've seen many bears, after miraculously navigating the biggest bull market of our lifetime, throwing in the towel. That in itself should raise the eye brows of market participants.
