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S&P 500 Chart Setup Continues to Warn of US Dollar Losses

S&P 500 – Prices pulled back from resistance at 1292.51, the 38.2% Fibonacci retracement level, to retest resistance-turned-support at a falling trend line connecting major lows since early May. The move can be classified as corrective however as long as a daily close back below the trend line does not materialize, with the broad bullish implications of Tuesday’s breakout essentially intact. The 38.2% level remains as near-term resistance, with a break higher exposing 1303.20.

SP_500_Chart_Setup_Continues_to_Warn_of_US_Dollar_Losses_body_Picture_5.png, S&P 500 Chart Setup Continues to Warn of US Dollar Losses

CRUDE OIL The slow grind higher continues after prices put in a Hammer candlestick above support at $92.11, the 61.8% Fibonacci extension level. The 50% Fib at $94.49 continues to cap the upside for now, a boundary reinforced by the top of a minor falling channel. A break above this juncture exposes the 38.2% level at $96.86.

SP_500_Chart_Setup_Continues_to_Warn_of_US_Dollar_Losses_body_Picture_6.png, S&P 500 Chart Setup Continues to Warn of US Dollar Losses

GOLD Standstill continues below the midline of a rising channel that has confined price since early May, a boundary reinforced by the June 6 high at $1553.42. A Spinning Top candlestick points to indecision and hints that a move lower may be ahead, with the bears initially targeting the channel bottom now at $1525.32. Importantly, this signal is considered relatively weak and confirmation of a reversal is needed on a formidable bearish close on the current bar.

SP_500_Chart_Setup_Continues_to_Warn_of_US_Dollar_Losses_body_Picture_7.png, S&P 500 Chart Setup Continues to Warn of US Dollar Losses

US DOLLAR Prices rebounded from 38.2% Fibonacci retracement support at 9571.77 and eased through the 50% level to challenge the 61.8% Fib at 9645.55. A push above this boundary targets the 76.4% mark at 9691.19. The 50% retracement (9608.66) lines up as initial support.

SP_500_Chart_Setup_Continues_to_Warn_of_US_Dollar_Losses_body_USD_062311.png, S&P 500 Chart Setup Continues to Warn of US Dollar Losses

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