It appeared during the lunch hour that there might have been a chance for a pullback today. A pullback today would have been a surprise after yesterday’s strong trend day. I’ve seen many traders state how unique it was to see $TRIN pegged below 0.4 and close below 0.3 yesterday.
Once the complex head and shoulders failed to confirm, today became a day of indecision. There wasn’t enough buying power to move the QQQQs over its October high and IYT also remained stuck the entire day mostly unchanged hugging its 50-day SMA.
Of course, the only chart that really matters is $USDUPX. The Dollar barely moved today which translated to the market not going anywhere. Denninger posted about the Dollar today. I think he says it best:
The rally in the market has exactly nothing to do with the economy and the outlook for it. It is tied to one and only one thing – the decline in the dollar.
A WEAKER, EVEN COLLAPSING, DOLLAR IS NOT COMMENSURATE WITH OR INDICATIVE OF A STRONGER ECONOMY.