We got the pullback we were looking for in the major averages last week.
We’ll see if last week’s lows hold… if not, the pullback will extend a bit longer. By all means, it looks bullish.
We also cover the red-hot US Dollar Index and discuss what may be next for the greenback. Below are some brief insights with a few trading charts.
The Russell 2000 jumps out as a bullish pullback to the top of base support. And the S&P 500 Index is holding up well and has a higher price target (4815-4835).
The US Dollar Index (DXY) turned up on a dime last week at channel support. The MFU-4 target was achieved this week with price coming into the 96 level. This is a zone where we would be looking for a pause/pullback for the US Dollar. Within the context of the long-term picture, we note that the US Dollar Index has cleared major resistance, and the weekly Money Flow Unit target comes in at 99.
The 10-year US treasury bond yield chart has a bullish setup with upside to the 1.85—1.93 area.
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