Editor's note: This is an excerpt from CEO Keith McCullough's morning research. Click here for more information on how you can become a subscriber.
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We had an immediate term overbought signal yesterday in the U.S. Dollar – backing off at 99.99 (Wayne Gretzky would have been proud).
Equity markets bounced and then accelerated into the close. Big up day for the markets ... lots of counter-trend moves, plus the things that have been working were trending higher.
But don’t confuse that with the broader trend here: the U.S. Dollar remains your friend.
Immediate term upside to over 100 for USD (finally!), with an immediate term risk range is 97.46-100.31.
Oil is getting sacked in the backfield for another loss, down almost a full percent to 46.63. This is actually a big move in standard deviation terms - we have it at 3.6 standard deviations oversold which establishes a lower-high of resistance inside of 50 (49.64 to be exact).
The two important points today are that the USD has a 100 handle in its risk range and oil at the top end of its risk range is inside of 50….that’s very deflationary.
