Stock Market Slams Into The 50 Moving Average
The markets are sharply higher again today. This is the fourth day in a row major gains are being seen on Wall Street. The Dollar again is sharply lower as the Greek aid package is essentially signed, sealed and delivered. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.22, -0.10 (-0.47%). Remember, a weak Dollar is positive for the stock market. As things look better in Europe, the Euro gets stronger. As that currency strengthens, the Dollar must weaken in response.
While the markets are turning bears into bulls, it is extremely important to recognize that the major indexes are slamming into the daily 50 moving average. This is major resistance. It can be seen clearly on the daily charts of the SPDR S&P 500 ETF (NYSE:SPY) and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ). After a four day sharp rally in the markets, this resistance level may signal a pull back in soon. Possibly as early as tomorrow or next week. It also allows for swing traders to jump on the short side for a couple days.