Here we see a weekly view of the ratio between the USD and the SPX. The swing in the relative performance of the SPX went from approximately -20% to +20%. Expecting a mean reversion on the order of about 15% (relative) is not out of the question in the near term. As long as this scenario unfolds the commodities will cotinue to come under pressure. Also take note of the MACD making a turn.In the very near-term I would expect the dollar to pullback slightly near 76.00. Today it found support at the 75.50 level before making a new high near 76.31. Immediate upside target cotinues to be at the 77.20-77.40 area.
Joke of the Day
Obama says US must continue to spend way out of recession
