By | November 09 2009 12:53 PM

Investors are ignoring Friday's disappointing unemployment data and have sent the S&P futures well beyond our downtrend line. Hence, investors appear to be opting for the topside following Friday's erratic session. Today's topside breakout in equities further signifies the S&P's increasing reliance on the path of the Dollar. The Dollar is experiencing a broad-based selloff today after the G20 released a statement saying global central banks will maintain stimulus measures and historically loose monetary policies. The Dollar's downward trajectory is boosting the S&P futures higher sans noteworthy U.S. eocn data. Speaking of the Dollar, the GBP/USD has popped past all of our previous downtrend lines while the EUR/USD tests its highly psychological 1.50 level. Hence, investors should keep an eye on the EUR/USD since a breakout beyond 1.50 and October highs could help the S&P futures head towards their previous 2009 highs. In addition to the Greenback's weakness, we also notice that gold has broken through its psychological $1100/oz level. This is yet another key topside movement for gold, supportive of further weakness in the Dollar and consequently stronger U.S. equities.