Erik McCurdy's  Instablog

Erik McCurdy
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Erik is the senior market technician for Prometheus Market Insight and has been performing chart analysis since 1995. The software program that he developed to monitor long-term stock market trends has correctly identified 92% of the cyclical turning points in the S&P 500 index since 1940. His... More
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Prometheus Market Insight
  • US Dollar Index Tests Important Support Level 0 comments
    Sep 24, 2012 7:25 PM | about stocks: UUP, UDN

    Early last week, our cycle analysis predicted the formation of a short-term low in the US dollar index. As expected, the rebound off of that low during the last six sessions has been relatively weak, favoring an eventual continuation of the violent decline from late July.



    (click to enlarge)

    Following the breakdown of the rally from 2011 at the beginning of September, the index moved sharply lower and returned to congestion support in the 78.50 area.



    (click to enlarge)

    The 78.50 congestion zone is a meaningful support level and market behavior during the next few weeks will likely provide an important signal with respect to intermediate-term direction. We will identify the key developments as they occur in our daily market forecasts and signal notifications available to subscribers.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: UUP, UDN
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