Today's interesting charts
Comment of the Day

August 01 2013

Commentary by David Fuller

Today's interesting charts

Price charts alert us to changes of potential significance, whatever their causes

David Fuller's view The US Dollar Index (monthly, weekly & daily) remains rangebound, albeit with an overall upward bias confirmed by the higher lows shown on the weekly chart following the climactic low in May 2011. It remains rangebound, probably in lengthy base formation development. The lows are rising and today's upward dynamic suggests that we will see a further test of initial resistance just above 84, where selling has checked rallies for over a year. Delegates at The Chart Seminar will note all the weekly key reversals on this chart at many of the upper and lower boundaries since 2011.

US indices such as the S&P 500, the Dow and Russell 2000 are becoming more overstretched relative to their 200-day moving averages. A larger setback than we have seen so far this year is likely to occur when the S&P Banks Index also commences a mean reversion to towards its MA. Meanwhile, we are seeing how an aggressively expansionary monetary policy drives stock market trends.

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