The Dollar Dow 10,000 and other things

The 108 level on the SPY looked way more important than it proved to be. A lot of eyes were on that spot, and when that happens it can lead to some sloppy trading. When we were closing in on it I said that if we went through 110 looked like a lock and that still seems to be the case. In more than one place I have seen this level referred to as the Lehman gap. If you look at the SPY on a weekly chart you can't miss it.

Another thing that can't be missed is the dollar. Look at a weekly chart in the UUP and you will see a double top in the weeks of March 6th and 13th 2009. From that point on it does nothing but go straight down. It closed at 22.41 after putting in a new 52 week low at 22.37, the all time low was 21.92. It is a relatively new product but it's correlation to the market cannot be denied. I think you need to have this on your screen at all times see if anything wacky starts happening to the dollar. Ultimately I don't see how such a weak currency is good for the market but for the time being it is what it is.

Real Estate(IYR) and Transports(IYT) Junk Bonds(JNK) Corporate Bonds(LQD) NASDAQ(QQQQ) Semi's(SMH) Homebuilders(XHB) Financials(XLF) Industrials(XLI), Tech(XLK) are not confirming the new highs in the SPY.