Flat Open, Will The Dip Buying Continue?

This morning, the S&P 500 Index e-mini futures (ES-M2) are trading higher by 0.75 points to 1400.75 per contract. The leading European stock indexes are trading basically flat this morning as well. Traders and investors continue to buy every market dip as the major stock indexes continue to hold up very well. It is very important to keep an eye on the U.S. Dollar Index futures (DX-M2) today as that inverse relationship between the dollar and the stock market seems to be back in play. Yesterday morning, the U.S. Dollar Index was surging higher before the opening bell as the S&P 500 futures were sharply lower. Once the dollar declined, the major stock indexes rallied off of the lows to basically finish the day flat. All traders should remember, the U.S. Dollar Index has a tendency to sell off once the opening bell rings at the New York Stock Exchange. Traders that want to follow the action in the U.S. Dollar index can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP). The PowerShares DB US Dollar Index Bearish (NYSEARCA:UDN), and the CurrencyShares Euro Trust (NYSEARCA:FXE) will trade inverse to the U.S. Dollar Index.

About Nicholas Santiago 575 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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