The USD Branch Is Creaking Loudly
posted Oct 1, 2004 at 12:11AM
Triangle resolved to downside. Yet the contrariarian in me had me lightening up on some...but not all "inflation friendly" stocks.
The 87 support line still holds and the dollar, although not quite in an oversold condition, is getting there
The need for caution is because such an obvious trend-line break often spurs all the technically minded side-line bears into the mix, and in the perverse logic of the market, provides the raw material for a reversal.
Still, from a purely TA perspective a bearish development for the greenback. Only time will tell if I was too quick to take profits...it certainly wouldn't be the first time.