Pick Your Lens:

If you are a bull you are usually looking out of a rosy one and the chart below is a good reason why. The greenback has been in an uptrend for some time and has traded from the lower left to the upper right. Since mid-January on a WEEKLY basis, it has declined only 10 times and this week heading into Friday has the look of a spinning top candle, which may signal some exhaustion into this powerful move upward. Of course, this would be welcome news not only to the overall market but to the energy sector as well. On the ratio chart below crude and the dollar were both rising together until the start of June when WTI started backing off as the intermarket relationship started to behave as it traditionally used to. The dollar has been recording some dubious candlesticks this week although one can make a legitimate argument for their own bias. Bears would say double top and bulls would say continuation pattern higher with the bull flag. Only PRICE knows and that should be your ultimate guide.

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