Like A Brick Wall

The Dollar hit key support and that night, the PM of Greece started to make noises again about the need for a better bailout and the possibility that the Euro could unravel. Again, this isn’t about telling the future, it is about knowing in advance where to look for potential resistance and support levels, and potential moves like this.

The question now is where is the next support level for UDN (or resistance level for the US Dollar)? Does UDN simply retest $26.4 or does it extend like the move for $28.8 to $27.4 and extend down to a level near $25.6?


I don’t care so much about currencies, but I am very interested in their impact on Commodity prices, because Commodities have been key leadership – Energy (OIH, XLE), Metals (XME), Gold (GLD, GDX). I will be closely key levels on these areas.

Oil Service (OIH) got hit for about 7% since the Dollar bottomed. Metals (XME) also was hit for about 6%, but is clearly now at key support.


Gold (GLD) is stuck in a three and a half month trading range. Critical resistance is $111.80

Copper (JJC) is now in its forth consolidation since mid-October. 1 & 2 led to nice rallies, while 3 led to a nasty break. There are some obvious support and resistance levels for JJC. Notice how on Monday, JJC cracked, only to see the market gap up hard at the open, to get back above support. Copper is currently up 40 cents over night, so we’ll see what tomorrow brings…


Apple is right above key support ($218.40 - $219.18). It has been sitting around for about 8 trading days, so a big move soon should not be a surprise.