The dollar is only up slightly today (+0.1%) so still hovering right at tits 50 day moving average, but obviously equity markets are struggling thus far. Yesterday I said bears would like to see last week’s lows broken. It appears that level is 1329.17 on the S&P 500. If the market closes below that level, we might be set up for a “fill the gap” episode down in the 1310s from mid April. We also have support of the 50 day moving average at 1326 so an interesting junction.
Whatever the case, it’s certainly not easy going for the bulls like it was for most of the period since late August 2010. The dead cat bounces and then hectic drops in the beta commodities like oil and silver also surely trapped some of the dip buyers who almost never seen that strategy fail anymore. Copper remains an issue – only up half a cent today.