HughGRection
Short

SPX v DXY W1 (S&P 500 v USD)

INDEX:SPX   S&P 500 Index
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S&P             500:
- Overbought RSI
- Overbought stochastic closed with a crossover last week
- Abnormally high correlation with the USDollar            
- At a 1 year minimum ATR

These technicals along with America's politica climate(i.e. ongoing budget problems) , the EU's internal strife and disparity, and Japan's race to devalue the Yen lead me to believe we may be seeing a multi-year triple top forming on the S&P 500             . If full on risk aversion kicks in, it would make a lot more sense for the USD to continue up while the S&P             drops.

trend appears to be up and it is breaking above the long term trend line, would need a lot of bad news to hold the bulls in check?
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The trend is up, as it was in the middle/end of 2007, and in the middle/end of 2000 right before it tanked. It is actually still below the long term trend line just as it is below the two previous peaks. I'm not saying it is guaranteed, but there are some serious signs of a reversal underway.
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I did try to post comment. But somehow, it didn't go through. Here it is one more time:
RSI is only at 71. So plenty of room to go up.
Crossing of the Stoch was a positive one. So, bulllish.
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I will agree it has a little more room to go as in maybe a couple percentage points. The stochastic crossover is at 93, and looks like it may be an exhaustion. From a risk/reward standpoint it would be very foolish to buy at an all time high on the upper edge of a bollinger band though. Thanks for your input.
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I agree with you the bowstring pas pulled tight and it's just a matter of time the arrow will be shot (down). My opinion at the mtime of posting is just too early to step in short.

Well. Today, we've seen an nice exthausion move. Let's see, if this was the last up swing for a small pull back, or the index taking as short breath for a further move up.
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