The dollar continues to slide……largely to the benefit of the euro……and, of course, oil futures.It’s enough to get a good, old-fashioned ramp job going overnight. Yes, again.  The futures are up about 13 points, which should be good for reaching yesterday’s highs on SPX — not too surprising given that tomorrow is OPEX and, well, because they can.

continued for members…

Our daily chart for SPX follows.  Look for yesterday’s highs and/or the TL from Apr 7’s 2125.92 to be tested, maybe even bested.

After that, there’s the potential for a significant drop to 2036ish — the red 1.618 and white .618 which just so happens to be intersecting with the SMA200 in a week or so (the white dot.)

I say “potential” because a 75-pt drop would be a lot of ground to make up.  And, it would be a serious trend-break for the purple channel, which has managed to contain each of SPX’s plunges at its midline.

But, it might be what is needed in order to convince TPTB that another devaluation of the yen is necessary for the continued “health” of the “market.” The tag below Mar 11’s 2039.69 low would be a nice touch, stopping out weak bulls for the next leg up.

The safer assumption is a dip to 2073.60 — the red .886 we’ve targeted for the past couple of days.  Just don’t get too excited if SPX slightly tops 2117.66 today.  Unless the indicators are lying through their teeth (always a possibility these days) we should see a sharpish sell-off early next week.