http://www.investorplace.com/48257/us-dollar-sp-500-index-gold-silver-gld-slv-uso-spx-uup/
Dollar Is Key to Metals and Markets Moves
A rally in the dollar will send the S&P 500, gold and silver down
Volatility increased this week as we watched the Greek default situation, the end of the second quarter and the customary window dressing by institutional money managers.
For the past week or so I have been sitting in cash, watching the price action and waiting for setups that have defined risk and solid rewards. With the heightened volatility I did not want to get involved because a trade in the wrong direction would wreak havoc with my portfolio. As this week evolved, the validity of those concerns was unquestionable.
Commodity investors have faced some tough price action recently as gold, silver, and oil have traded significantly lower. Now that we have witnessed some heavy selling pressure, particularly in the silver and oil markets, investors want to know where price is heading in the short term.
Conclusion
In closing, my analysis reveals that the U.S. Dollar is poised to push higher, particularly if current support holds. If the Dollar can push above key resistance levels overhead, I expect the resulting price action in gold, silver, oil, & the S&P 500 to be dismal for the bulls.
I will be watching the Dollar closely looking for clues about price action. If I’m wrong and the Dollar breaks to new lows I would expect a massive rally in precious metals, energy, and domestic equities. With the recent price action that we have seen in the U.S. Dollar, I find it much more likely that the U.S. Dollar extends higher in coming weeks. As usual, time will tell.
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