Long Downside Wick…Dollar testing support
By Chris Kimble
Downside wicks usually take place at market lows or at support. The chart below, highlighting several downside wicks and a bullish falling “PATTERN” was the reasons to go long the 5oo index on 9/1 (see post here).
Click on Chart to Enlarge
The S&P 500 had its best September in 70-years bouncing off this support, after it created these “downside wicks.”
The U.S. Dollar is testing key rising support and created a fairly long “DOWNSIDE WICK” yesterday, in the chart below.
Click on Chart to Enlarge
With the Dollar on support, only 3% Dollar bulls and now with this long “downside wick” taking place, all the more respect for this pattern is at hand and understand that a rally in the Dollar, could be ugly (see post here) for many asset classes!!!
KEEP STOPS TIGHT TO PROTECT GAINS…
