US Dollar & Market Update

US dollar has done well for last couple of months. Let's look at UUP chart (US Dollar Etf). Looks like it has completed A-B-C correction pattern, it is pushing the trend line resistance. MACD is trying to turn up and RSI has plenty of room to support higher prices. If A-B-C correction is indeed complete, 200 DMA seems like a initial target, higher potential exist. 

Please see we have position in UUP, we took the position when QE 2 was announced. At that time there were 98 % dollar bears and price structure looked complete.

Silver is holding well for last couple of days, it is testing the trend line. If the correction has started then it should fall soon within few days. MACD has turned down, RSI has plenty of room to support lower prices. You can look at ZSL, it is leveraged inverse silver ETF. Please see, we also have position in ZSL.

$VIX head and shoulder pattern is still a possibility, it is not showing any directional bias. It should break out soon. We will know soon.

S&P structure looks complete, it is still bullish with no price exhaustion. Today we thought price is turning down. We will know soon.