S&P Futures Chart

Just a quick analysis on SP futures here. Looking at a daily chart, we have a nice rejection off the 61.8 fib level which comes in at 1354. This is in-line with our analysis on Dollar Index and EUR/USD from yesterday and today that is supportive of a bearish view on equities and risk overall, however notice the ACC/DIST indicator (market breadth) is still above its prior resistance which is now support. This is the only thing that's stopping me from outright taking a short position on risk, once that breaks lower, I would be more comfortable with the idea of outright short risk assets, whether it be commodities, currencies or equities.

Expect Dollar Higher and Risk Lower

Today we look at a Daily Dollar Index Chart now that we have FED day over and there are some interesting developments. Just like the EUR/USD chart I put up yesterday, we see that Dollar Index spent the last few days  under that major 81.80 resistance level, but as I pointed out in the EUR/USD anaylsis yesterday, that seems to be misleading. As we look at our ACC/DIST (market breadth indicator) we clearly see that recent price action has been decidedly above prior resistance despite price action telling us otherwise. With this in mind, it would be supportive of a bearish view on risk assets and I would be looking to continue fading moves lower on Dollar and considering selling risk assets against it (Commodities, EUR/USD, Equities).