USD US Dollar Index Daily Chart

Work this chart with the prior dollar chart. DXY, dixie, or USD, the US dollar, is at 90.19. The upper band is violated so the middle band, which is also the 20-day MA, at 90.11, is on the table and the lower band at 89.40. The buck is testing this key support right now. LOD is 90.05 and then a bounce to 90.25 then a slump over to 90.19. All eyes are on the dollar. The euro has not budged much today after Madame Lagard stepped up to the plate.

The positive divergence shoots the buck higher but it hit the top band, at the same time the RSI and histogram soften, neggie d, which helps create the pullback in the daily time frame so USD can test the critical 90.11 support. This is for all the marbles.

If the 90.11 holds, and the dollar begins ascending (look at the long and strong stochatics and money flow telling you there is fuel in the tank), the shorts may panic. We could easily be back into a March 2020 redux situation in the time it takes you to head to the can and return. The top band and 50-day MA at 91.01 are converging on each other and the top rail all at 90.85-ish. Thus, if the purple price resistance at 90.75 gives way, the 90.85-ish confluence is next, then 91.25. If the shorts are panicking, considering everybody and his brother is short the buck, even Aunt Tillie that only started playing the markets last week, the move may be epic. The dollar would spike vertical from here tanking US stocks and gold.

If the USD keeps testing at this critical 90.11 support, and price falls through, and then falls through 89.75, then 89,25 which is for all the marbles on the down side for the buck. Below there, all Hades will break loose and the dollar will collapse like 99.9% of Wall Street believes. This will send stocks and gold higher. Weaker dollar higher stocks and gold. Stronger dollar lower stocks and gold. Which outcome do you think will occur?

There is gas in the bull tank with the MACD and stochastics which hints that in a day or two the buck may be back up at 90.75. You have to simply watch it. Dollar up is terrible for stocks. Dollar up fast in a short-covering rally may crash the US stock market. Dollar weakness will keep the party alive with Janet and Jerome pouring the Fed and Congressional wine into red Solo cups for the drunken traders all night long. The Band plays on. 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.

Note Added 1:51 PM EST: DXY 90.18. Euro 1.215. SPX 2853. VIX 21.49. UTIL 860.

Note Added 2:29 PM EST: USD, or DXY, 90.15. SPX 3858. VIX 21.20.

Note Added 6:38 PM EST: The SPX ends at 3853.07 missing a new closing high by only 17 pennies. The new all-time record high at 3861.45 from this morning remains the record all day long. The SPX 2-hour chart is good to go for bears. The nub on the RSI disappeared so it is neggie d. Thus, stocks are expected to drop and the only thing that can save the day is happy talk, or happy news. This week we already had the Yellen Pump, the Biden Orgy, the Powell Put and the Lagarde Love so all of these folks shot their load for a while. The bulls may announce vaccine happy news that would be a possibility to save the day. Other than that, the bears should flex their muscles going forward. The SPX daily chart is neggie d across all indicators so it is good to go for a spankdown on the daily basis. This gels together with the smackdown that should now occur on the 2-hour. SPX weekly chart is neggie d across all indicators except the MACD line, however, this is a weekly candlestick and tomorrow still has to play out. If the SPX retreats a bunch on Friday, that could pull the MACD line down a hair, just enough to make it neggie d, and the top would be in on the weekly basis. If the MACD is still long and strong tomorrow when the week ends, the weekly basis will need another week or two to top out so the daily chart will send stocks down for a few days then back up a few days and that will be the top on the weekly chart. However, this turd of a stock market has needed to collapse for a while so expect the bottom to fall out at anytime. The low put/calls for an unprecedented length of time hints that this is a biggie top occurring in Q1. The top can be sorted out on the monthly chart as time moves along. Considering the universal neggie d on the 2-hour, daily and weekly except for that MACD, it is very likely a selloff begins now (the top was today) and will run for several weeks. USD drops down to 90.08 the dollar is testing the critical 20-day MA at 90.12. This pivot is huge. If the dollar fails here and goes sub 90.12, stocks will rally strongly higher. If the greenback bounces off the 90.12 support and heads higher, the stock market will tank. VIX is at 21.32 below 24.77 so the bears got absolutely nothing. If VIX pops above 24.77, the wheels will fall off the stock market. What do you think? Perhaps a Black Friday tomorrow? Maybe a Black Monday?