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Market Structure for Wednesday, September 30th

|Includes:PowerShares DB USD Bull ETF (UUP)

 Last Friday, the Emini broke its uptrend line from mid July. However, as we have seen time and time again…any multi-day pull-back  attracts the dip buyers in droves. If you are bullish, consider sitting on your hand until we see 1061 and 1063 give way. For the bears, you’ve got nothing until we see a break of (at least) 1049… it will take a failure at 1036 to force most traders to question the bull side.

4 Hour Emini

In the trading chat room we have been glued to the dollar. The UUP (dollar index) is bumping up against its long term downtrend line as well as major resistance at 23-23.04. A break above 23.04 should put significant pressure on commodity related stocks…which should in turn put pressure on the broad averages.

UUP

Once gold (the chart below is of the continuous gold contract) broke–and closed above— 1007.70,  it chopped around and immediately failed. While the chart is still bullish, it may need to consolidate or pull back towards 975 or 960. The 89 ema (in blue) has provided decent support in the past and is currently sitting near 960.

Gold

If today’s DOE crude inventory report is bearish we may see the 65 dollar area get tested once again. A break of 65 likely sends towards 60 in a hurry. Any rebound should stall out near 70.

Crude


Disclosure:  No positions were held at the time of publication, though that may change at any time.

Stocks: UUP