The Chart we posted below is showing that the dollar futures are in a main downtrend which is the blue line, but at the same time we have been inside a steep downtrending channel within the big channel. If we take a look at the setup we have here, we have the dollar sittin on 2009 lows and on the 50% channel line trying to hold. As you guys know a break of that 50% line and close below usually means the bears are in control and puts a target towards the bottom of the channel. Watch this chart close because a break lower will push commodities up again and the market a nice move possibly to new highs.
/DX Dollar Futures Chart
The next chart we have is the /ES futures chart showing us that we had a sharp rally higher off the back-test which we called, and then flagged out between 1335 and 1327. Now this A.M we are pushing the upper range of the flag at the 1335 level and we are currently trying to break. If everything lines up these two charts are giving clues of a market that wants to go higher. Holding above 1335 takes us to new highs towards 1343.
/ES S&P 500 Futures Chart 4 hr
/ES S&P 500 Futures Chart 1 hr
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