Dollar falling hard. Gold and bonds up big. Stocks wavering.
The January seasonality chart might suggest a day 3 (not Jan 3) pause from the 2-day rally to start the year.
Chart provided courtesy of www.sentimentrader.com
Big negative reversal so far in the dollar this morning. It ran up and filled two gaps, then backed down. Looks like a bear flag and it may test the 50-day EMA soon. Potentially good relative strength for the I-fund after today (in comparison to C and S?). The dollar is actually still positive today so that relative strength probably won't show up in tonight's I-fund price. It's when (if) the UUP breaks down from the flag that it may benefit the I-fund. This is not a recommendation to get in the I-fund. Just an FYI.
The Transports have held at support so far and we're seeing a bounce off the at support this morning as the railroad stocks are doing well. There is some resistance at today's high which created a little pullback to test a new support line - created by last week's high. Looks like 9200 is that pace to watch for support now, and about 9300 for resistance.
Fed-speak brought buyers back this afternoon.
Come on 2300!
S&P 500 (C fund)
||Dow Completion (S fund)
||EFA (I fund)
||Bonds (F fund)