Tuesday, September 22, 2009

Today the US Dollar Index (UUP) formed a double bottom and while also putting a new low in. The volume in the UUP has been strongly increasing over the past few sessions which may be a sign of capitulation. An interesting divergence occured today as the UUP broke news lows and the GLD did not break new highs. Also, the SPY closed the day with a red candle and the broader equity markets did not break new highs and rally on the weak Dollar trade. The QQQQ did confirm the dollar trade by breaking new highs.

US Dollar Index (UUP)

SPY
GLD

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