Don't fear the reaper

The major indices gave a stay of execution to the shorts on Thursday and Friday but it is still a pretty good market for being long. The test is coming in the form of a lot earnings this week. I think we need to see is these stocks can continue to trade above important MA's or if they start to give it up and trade lower on some volume. If they can hold on and grind higher the shorts are in for some pain if not an intermediate top could be in place.

Some spots to watch on the upside are SPY 110 QQQQ 43.30 and IWM 62.61.

The plunging dollar still continues to dominate the news and the some interesting spots have developed in the UUP.

We could be seeing a bottoming process here watch 22.71 the 20 day MA above and 22.37 below we may have put a double bottom in there.

If things continue as they have a stronger dollar makes for weaker stocks, that can't last forever but in the mean time it is what it is.