Tuesday, December 13, 2011

Morning Market

The above chart shows the strength of the dollars action over the last two days.  Notice the strong gap higher on Monday, followed by two strong intra-day rallies yesterday.

But the above daily chart is the real eye-opener.  Prices moved through key resistance yesterday on rising volume.

After moving lower Monday, prices moved lower yesterday in the gold market.

Like the dollar, gold prices have moved sharply lower on higher volume and have now traded through key support.

Oil prices are now in a symmetrical triangle pattern.  Pay particular attention to yesterday's price action as oil prices rose when the dollar moved lower -- a very unusual development.