The last few weeks have been extremely bullish for both stocks and gold, especially gold, which hit a new all-time record high of $1,342 per troy ounce today. However, this entire rally was driven by a single factor: a massive decline in the value of the Dollar.
Listening to all the QE talk out there and watching the government pour billions of dollars (literally) into the market every day (literally) it’s hard to imagine this feast ending anytime soon. However, the SPX and gold chart are exhibiting some weakness, with both reaching the top of short-term channels and with the SPX displaying a massive MACD divergence and turning stochastics. The Dollar chart, in particular, is very interesting. We hit the 76% retracement level today and there is hardly a single Dollar bull out there. Can we drop further? Absolutely, and long term I am extremely bearish on the Dollar and most other fiat currencies out there. However, there is a solid probability we turn here. A look at the weekly SPX chart (last one below) also suggest a a large correction may be looming.
If however we breach the resistance/support lines on all of these charts I pointed out below, I’ll be a very convinced bull for the near future.
Chart Games 
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