By Markus Heitkoetter
Stocks attempted a comeback today, with all 4 major indices ending the day higher.
The S&P had a nice 13 point rebound that erased most of yesterday’s losses. The DOW came right back as well. With an impressive 103 point gain the DOW erased yesterday’s losses and then some! With a close of 17879.55 the DOW ended the session with a new all-time high.
Even the RUSSELL enjoyed a nice bullish day. The RUSSELL led the way with a 1.25% gain. With today’s move higher the RUSSELL is back in positive territory for the year, up .4% YTD.
With today’s broad market bounce it was surprising to see yesterday’s weaker performers continue to struggle. Yesterday’s 3-5% losers like Best Buy (BBY), Tesla Motors (TSLA), and Apple Inc (AAPL) all closed lower.
At levels not seen in 4 years, the U.S. Dollar is putting some serious pressure on commodities like Gold.
The EUR/USD (6E) currency pair moves in the opposite direction of the Dollar. Today the pair closed at the 2nd lowest level of the year and is now finding key support at lows of the year.
Using the Power Crossover Method we currently have a market that is showing indecision and it’s make it or break it time for the currency at these support levels. If we break support, there’s a good chance that we’ll get a Sell Signal. If support holds there will probably be an uptrend in the making. If the EUR/USD trends higher the USD should drop, relieving some of the pressure we’re seeing on commodities.