USD US Dollar, GTX Commodity Index and SPX S&P 500 Daily Charts

The weakness in the US dollar is pumping commodities and the broad stock market higher. USD tops out on 5/14/20. This is where commodities, GTX, takes off higher. You can look at CRB, and other commodity charts, and see the same or similar behavior. Oil had a record-setting rally in May. The SPX also pops higher when the dollar rolled over.

For USD (do not confuse $USD which is the dollar index, like DXY, the dixie, with USD which is the 2x semiconductor ETF), the 20-day MA stabs down through the 50-day which is a negative sign for price and the dollar moves lower. USD came up for the back test of the 20, and fails, so the bears win and price falls apart. USD next tests the 200-day MA support and fails so the dollar needs to back kiss the 200. That falling wedge pattern is bullish so the buck will likely bottom on the daily basis over the next one to three days.

For GTX, the green upward-sloping channel points to more upside after a pullback to the bottom rail. A pullback in GTX would correspond to the dollar popping-up to back test the 200-day MA at 98.39. The 20-day MA pierces up through the 50-day MA which points to higher prices ahead for GTX on the daily basis.

For SPX, price gaps higher once the dollar weakness began. The S&P 500 travels up into the apex of that rising wedge which is a bearish pattern. The collapses from rising wedges can be quite dramatic (a fast and sharp flush lower creating carnage across the land).

It has been a little mini-saga looking for the near-term top due to the complacency and fearlessness in the stock market. It was a mystery if the SPX was going to test the 200-day MA at 3004; it did. After that, the hanging man candlestick prints, followed by another two days later, forecasting a direction change. Alas, price moves higher as the Fed and other central banks keep promising to print money forever. The goal is to always protect the wealthy elite class that own large equity portfolios.

Keep an eye on the US dollar since stocks and commodities will likely move inversely. The dixie is currently trading at 97.38 sneaking through that LOD from yesterday. The dollar bears are in control. S&P futures are up +13. Traders Kneel and Praise the Endless Power of the Federal Reserve. King Powell calls the Fed's power, "Limitless." Jay wants to make sure the wealthy class sleeps well at night. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.