Technical Indicators

The US dollar's run stopped last week, but not before new highs were recorded against the euro, sterling, and the yen.   By the end of the week, the euro had risen 1.4%, sterling 0.9%, and the yen had risen as much as the two of them put together.  It was the biggest weekly gain for the yen in 16-months.  

There is one pressing question that international investors will be mulling this weekend:  How far and how long is the dollar's correction?   

Deny it.  Engage in all kinds of mental gymnastics to dismiss it if you must,  but the fact is the US dollar is rising, and not just because of negative developments abroad, but positive economic developments in the US.  

A look at the global capital markets as if analysis matters.

Contrary to the death of the dollar chatter, the US currency continues to appreciate.  Here's why there is still punch left in the bowl.  

What if global capitalism is not about to collapse?  What if the sun rises next week, and the great apocolypse called for and predicted does not materialize yet, what then for the dollar?  

Overview of the capital markets as if they were not managed by an evil cabal.

some such as JPM, are already rushing to the defense of their clients (i.e., the people to whom JPM's prop desk may have some selling left to do) by providing a handy backtest of which key technical indicators proved useful in the past when determining market bottoms (if not tops - that one JPM will probably never, ever disclose), and what these are saying at this moment. So for all those who need convincing that the "bottom is now in", and are desperate to BTFD because other, greater fools will also BTFD and so on, here it is, straight from Jamie Dimon's mouth.

No heavy ideological axe to griind or conspiracy theories to propound, just a simple look at the price action in the capital markets.

In a secular rally, pullbacks will inevitably arise. Market participants, though, should not view all drops in the same light. In addition to the differences in the depth of the collapse, the magnitude of the changes of critical investor sentiment statistics may differ greatly. Assessing the current retracement is a difficult prospect as we may have yet to reach its terminus.  Based on the initial sentiment statistics, the current decline has more similarity to the most significant historic collapses.

There may be one great conspiracy dictating the course of the capital market, but if there is not, what is the near-term outlook for the dollar?  

The world may be a big conspiracy and civilization as we know it may end soon, but if you care what the dollar may do next week, take a look at this post.

Simple review of technical condition of the capital markets.  Light on polemical zeal, and heavy on technical analysis.  

The euro has fallen an unprecedented eight weeks in a row.  The dollar set new five year highs against the yen before the weekend.  Here is an overview of the near-term technical outlook.  

Overview of the technical outlook for the major currencies, bonds, Treasuries, stocks, CRB and oil.

Overview of the technical conditions of the major markets.