Yahoo Finance US stock markets react poorly to dollar strength on Tuesday
Dow Jones 30
The Dow Jones 30 has pulled back a bit during the trading session on Tuesday, as the US dollar has strengthened rather drastically. I believe that the overall attitude of the stock markets remains strong, but the sudden burst higher in the value of the US dollar of course has put a bit of a trouble into this market. I look at the 24,500-level underneath as support, and I think that it is only a matter of time before the buyers would return somewhere in that vicinity. I would be cautious, but constructive on any type of bounce and add to the position.
NASDAQ 100
The NASDAQ 100 has bounced a bit after initially falling rather hard against a backdrop of the greenback strength. The 6800-level underneath is support, just as the 6900 level above is resistance. I think it we can break above the 6900 level; the market probably then goes to the 7000 handle above which has been resistance as of late. Watching the US dollar strengthen the way it has during the day only reinforces how correlation continues to be the issue in financial markets. I believe that the overall attitude of the market continues to be one of positivity, but we need stability first. I would add slowly to an initial core position that is based on the US dollar index slowing down a bit. If we can finally break above the 7000 handle, that will continue the move towards 7250 which I expect see sometime the summer.
Dow Jones 30 and NASDAQ Index Video 16.05.18
This article was originally posted on FX Empire
