** Dollar index enters bull market - Life cross prints **

19 ביוני 2024

On the above 2 day chart price action has entered a bull market. We define this as:

1) The 2-day 50-day SMA (blue line) crossing up the 2-day 200-day SMA

AND

2) Price action above the 2-day 200-day SMA.

Both of those conditions have now confirmed. The Dollar index is in a bull market.

The previous life cross (idea below) printed in November 2021. The dollar index rallied 20% after the cross, I’m sure you noticed.

Is this another 20% bull market like 2021?

Unfortunately, it is looking that way. However much higher. Not only that but there is evidence to support a faster rate of change in the uptrend.

At the moment the dollar index remains in a trading range that began in November 2022. Markets are likely to remain unaffected until the index exits that range. A bull flag has printed since the trend reversal and life cross.

The bull flag extension would take price action outside the trading range. When this happens AND past resistance confirms as support… be in cash. No stocks no crypto no metals no animal spirits.

This bull market has a 1st target area with the index rallying to 130. Yes you read that correctly. A detailed explanation of why and when this is likely to happen is written elsewhere.

Ww


November 2021 Life cross

15 ביולי 2024

הערה

I noticed more than a few folks indicating a bearish outlook on the dollar following the recent sell off and world events.

Would recommend a cautious outlook. Since the life cross, price action has indeed corrected this is perfectly normal. On the 2 day chart below price action is arrested not by the 2-day / 200-day SMA as it appears but rather past resistance. Indeed, notice the trend? What is it? Higher highs higher lows. Until market structure is broken, dollar remains bullish.

2 day


Latterly on the 10hr price action is considerably oversold.

10hr

27 בספט׳ 2024

הערה

Traders be careful, dollar is oversold with bullish divergence.

1 באוק׳ 2024

עסקה פעילה

Never doubt the signal. Not even a little bit.

11 באוק׳ 2024

הערה

Ready for 127 DXY ??

There's a hurricane coming and I'm not talking about the one hitting Florida.

23 בנוב׳ 2024

הערה

Don't think most folks have an idea of what is coming... A storm.

29 בנוב׳ 2024

הערה

dollar to give markets a chance to catch their breath...

10 בדצמ׳ 2024

הערה

Dollar at resistance. If it breaks above 107 to confirm support, markets will tumble.

18 בדצמ׳ 2024

הערה

Resistance breakout...

Better dump those doggy coins and silly XRP tokens fast before the market does it for you!

31 בדצמ׳ 2024

הערה

Much exposure to risk assets and growth stock?

10 day Gaussian channel has the DXY index emerging and confirming support on past resistance. There are very few examples in history this development did not result in a rapid increase in dollar strength.

I know most of social media, influencers etc are calling for a dollar collapse, but the chart does not support that outlook.

10 day

7 בינו׳

הערה

On December 10th:

"Dollar at resistance. If it breaks above 107 to confirm support, markets will tumble."

Dollar now consolidating above 108, not good for risk. Of course there will be stocks unaffected by this move in the dollar strength, but growth stocks are in for a rough time.

13 בינו׳

הערה

110 consolidation begins, if that continues expect 114 to be next.

Do not be long risk while this is happening.

3 בפבר׳

הערה

"do not be long risk" mentioned in last update.

The dollar has now all but confirmed a break of resistance at this time.

Can you imagine a run towards 170 ??
The chart forecasts such a move.