The Dollar is holding onto a key double bottom from November 2010. The master level on the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is $21.90. This level was tagged on Friday and retested today. Since the retest, the Dollar has inched off the lows and actually moved to the positive side. This double bottom should be very solid support in the short term. As the Dollar has firmed up, gold, silver and oil have started to pull back. The SPDR Gold Trust (NYSE:GLD) hit a high of $140.61 today but is now trading at $139.88, +0.53 (+0.38%), the iShares Silver Trust (NYSE:SLV) hit a high of $35.78 but is now trading at $35.25, +0.56 (+1.61%) and the United States Oil Fund LP (NYSE:USO) traded as high as $42.79 but is currently sitting at $42.51, +0.18 (+0.43%).
The markets are hovering around the lows of the day today as the markets seem to be worrying more about loss of stimulus from the Federal Reserve more than the Middle East unrest. This is a dramatic shift from last week and must be watched very closely.