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Equity Indices and USD Review

Dollar Index
Sentiment towards the Usd remains weak. Price momentum favors the long side of trade, but caution is required in expecting a break-out higher in DXY values. There were major sellers in at 74.50 previously, which is a major potential swing point area.

The news wires are busy in regard to dollar valuations following the ECB call for the US Administration to stand behind their long-dollar policy. Six days of sideways consolidation allowed one break-out signal to form. 75.50 and 73.50 are the two price points of note.

The May 04 11 long Usd/Cad and short Eur/Usd signals sent to clients covered intra-day commodity and equity weakness which transposed itself into minimal Usd buying.

Best moves after 20:00 ET. Daily range 60 ticks. RSI is long. 50 SMA is @ 75.70. 20 SMA is @ 74.40. 36-month 85% inverse correlation to S&P and Oil moves.

TheLFB client note updates for caution at these levels have been justified. No signals are forming in the near-term. Clients will be notified the moment that price action breaks.

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TheLFB DXY Trade Plan Content


S&P Futures
Sentiment towards the S&P 500 remains short. Price momentum favors the short side of trade, but caution is required in expecting a collapse of SPY values below 1325. 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 another big move.

The May 03 11 S&P 500 signal sent to clients, short from 1352, has hit its two main targets, and now is now consolidating just above the 20-day SMA area at 1330. The May 03 11 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 7430.

Best moves after 20:00 ET. Daily range 22 points. RSI is short. 20 SMA is @ 1331. 36-month 75% inverse correlation to dollar index moves.

TheLFB client note updates for moves lower have completed the first leg. No signals are forming in the near-term. Clients will be notified the moment that price action breaks.

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TheLFB S&P Trade Plan Content