After a massive +12% move in a compressed period of time (9 weeks), the US Dollar has indeed proven that cold hard American cash is king. But what next? Post the AIG deal, Bernanke and Paulson have the bailout balance sheet of the US Government taking on water again... this is US$ bearish, on the margin - and everything that matters in markets happens on the margin.
- I had short term momentum support at $79.25. That broke today as the US$ Index weakens to $78.83. Next support is $78.21. If that levee doesn't hold, watch out below.
chart courtesy of stockcharts.com