There’s an interesting tug of war going on between DXY and GC.  As we forecast last week, GC has dropped down to test its SMA200.  At this point, it is also testing two key trend lines that we’ve been expected would come into play again. At the same time, DXY has finally broken back above its SMA10 — and continues to test its SMA100.  As detailed yesterday, which way it breaks should determine whether USDJPY or CL drives stocks next.

continued for members…

The falling white channel has been broken out of.  But, I won’t believe it until DXY breaks above the SMA100 as well.  Anyone who went long on the SMA10 pop should be extra careful

USDJPY continues to waffle — so far, unable to make any more headway.  After a strong move into the end of the month, it’s definitely looking weak……while CL and RB are still on the back foot, potentially dropping significantly lower if the support they’re at now doesn’t hold.  But, CL is backtesting a falling channel and RB should get a bounce off its SMA100 at 1.67.

Perhaps another test of the channel top before one final plunge?

This chart doesn’t show it, but we have a higher target on VIX as long as it remains above the yellow channel bottom.  Please refer to the Current Forecast page.

I updated the Current Forecast page yesterday and that should provide important targets not obvious from the charts.  I’d take a shot at a long position in gold here at 1266 with tight stops in case TPTB have it in mind (they usually do) to blow out the dollar skeptics.

This will be me only post today, as my daughter fell ill overnight and I spent the night in the hospital with her.  She should be okay, but I’ll be here for the remainder of the day at the very least.  Trust me, you don’t want my advice after only 2 hours of sleep.