Note from dshort: Chris sent me this material yesterday, but I was offline and missed the opportunity to post. Here it is, a day late, but just as valid.

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The U.S. Dollar has moved up 6% over the past five weeks. This rally has pushed bullish sentiment to levels seldom seem the past four years. Each time bullish sentiment has reached these levels at (2) in the attached chart, the Dollar retreated for a while. At the same that time bullish sentiment is very high, several resistance lines are meeting at one price point...suggesting the Dollar should cool off for a while.

 

 

At the same time the Dollar has moved higher, Crude oil has declined from $109 to the low 80's. Crude oil and the 500 index have had a high degree of correlation the past few years. Now Crude oil is hitting a support line that just happens to coincide with the stock market lows of 2010 and 2011.

 

 

Is the Hot Dollar going cold for a while and Cold Crude about to get hot? Patterns look that way for a while.

 

(c) Kimble Charting Solutions
blog.kimblechartingsolutions.com