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Major Level Tagged, Markets Sell Off Highs

|Includes: GLD, SLV, SPDR S&P 500 Trust ETF (SPY)

The markets opened sharply higher on news that Bin Laden had been killed and a continued fall in the Dollar. The SPDR S&P 500 ETF (NYSE:SPY) is higher, trading at $136.76, +0.33 (+0.24%) while the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is lower, trading at $20.88, -0.07 (-0.33%). A shocking stat shows just how closely tied the Dollar and the markets are to each other in the opposite direction. The U.S. Dollar is down around 8% on the year while the markets are up 8%. This shows that the markets are inverse to the Dollar and explains one of the reasons why the Federal Reserve favors a weak Dollar policy.

The SPY opened at a massive resistance level from a pivot on June 18th, 2008. This level happens to be at $137.10 - $137.15. No sooner did the market hit that level, then a sell off took place. After a short move lower, the markets retested trying to break through again but failing. Another sell off took place, this one bringing the markets sharply lower to only minor gains on the day. This is a possible top on the markets in the short term.

Commodities started the day with heavy losses, however gold is now soaring with the SPDR Gold Trust (NYSE:GLD) trading at $153.01 +0.64 (+0.42%). Silver has recovered off of major losses, but is still down.  The iShares Silver Trust (NYSE:SLV) is trading at $45.73, -1.15 (-2.45%)
 but had been as low as $43.58 and the United States Oil Fund LP (NYSE:USO) is nicely positive, trading at $45.53, +0.38 (+0.84%).

Gareth Soloway