Global Equity and Dollar Index Debrief

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Includes: FXC, FXE, SPY, UDN, UUP
by: The LFB

Dollar Index/DXY
Sentiment towards the USD remains weak. Momentum favors the short side of trade, but caution is required in expecting a collapse in DXY values.

There were major buyers in at 72.50, which is a major potential swing point area. The news wires are quiet in regard to dollar valuations.

Five days of sideways consolidation have not allowed any signals to form. 73.50 and 72.50 are the two price points of note.

The May 4 long USD/CAD and short EUR/USD signals sent to clients have covered intra-day commodity and equity weakness, which transposed itself into minimal USD buying.

We feel caution at these levels has been justified. No signals are forming in the near-term.

Equity Indices
Sentiment towards the S&P 500 remains mixed. Momentum favors the short side of trade, but caution is required in expecting a collapse in SPY values.

There were major buyers in at 1330, which is a major potential swing point area. The news wires are quiet in regard to equity indices valuations, but earnings season could easily ignite a big move.

The May 3 S&P 500 signal sent to clients, short from 1352, has hit its two main targets, and is now consolidating just above the 20-day SMA area at 1330. The May 3 German Dax signal sent to clients, short from 7515, has hit its two main targets and is now consolidating above the 20-day SMA area at 7320.

No signals are forming in the near-term.

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