SP500 and USD TRENDS. Friday's late session buying in the US enabled the S&P500 to close ABOVE its 200-day MA of 1115 but has yet to close above its 100-day MA (last close was in May 13). Traders must keep on the lookout for the 1126-27 level, which currently represents that 100-day MA. As the gap between the 100 and 200 day MAs narrows, it increases chances of a price breakout from both averages. The USD INDEX closed Friday further below its 200-day MA, but on a WEEKLY basis, the price has yet to close below the 200-WEEK MA. Note that the USDX 200-week MA held well as a foundation in mid April and acted as a congestive support in Feb-Mar (80.05-10) . I expect the Fed to disappoint the markets tomorrow by NOT implementing any QE (only mention it as an option) which will help support USDX.
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