Weekly results went from bad to worse with the S&P 500 (SPY) back down -4.2%. While the bottom of the recent upward trend-channel held during Friday’s rout, short-term technicals are not oversold enough to offer support, and it’s easy to imagine lower annual lows ahead.
Also, while the U.S. Dollar (UUP) may look overbought using the same periodicity RSI I just referred to for equities above, recall that currencies are much more likely to trend while also taking a close look at that Omega Risk-Reward ratio to the far right. It looks like the dollar is finally making an long overdue run higher.
Source: Mrkt_Commentary subscription service; prior weekly posts.
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