Some General Things I Am Glad to See Here

There are many things I like here. I will point out three.


First, the dollar. I last discussed the dollar index here. In that, I pointed out the lack of divergence at its high, and its having broken out. But, now, we have the divergence, and it’s lost that breakout.

Zoomed out:

DXY

Zoomed in:

DXY


Second, the Russell, which I last discussed here, continues to look good.

Not only is there a “greater” inverse available to us here, but the “right shoulder” of that “greater” inverse is itself a “lesser” inverse as well:

RTY


And third, the German $DAX, the important structure on which was discussed here, is now peeking out of that structure:

DAX

This index tends to lead US markets. It’s in a very bullish configuration (as it stands now) and I would expect it to be leading us lower if we were in trouble, longer-term here. To the contrary, I think it’s more probable that the strength here foreshadows strength coming to us. This index is far off its March low.


We have a Fed speaker speaking this evening. It won’t take much for these to move. One dovish comment and it’s go time.


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