Dollar at Resistance

Helping this slow motion selloff has been the strength of the U.S. dollar – the almost perfect inverse correlation, while maddening, must be respected.  The dollar is down a bit  today, but the market is not responding in kind (i.e. it normally rallies).  While this chart is delayed by a day (the dollar is under 75.80 today), one can see the obvious technical culprit holding the dollar back.

A move over this 100 day moving average would bode well for a continued move upwards in the greenback, and as long as recent patterns hold, not a great sign for the greater equity market.  We can see when the dollar first approached the 50 day moving average about four weeks ago it had a handful of days it struggled to burst through before it finally did so.  Would not be at all surprised to see a similar situation here at the 100 day.

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About Mark Hanna 542 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

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