Gotta stop fighting City Hall

The Dollar, as everybody knows, has been CRUSHED! I showed a chart of a distinct breakdown a few weeks ago. Little did I know that it would be this severe. At the same time this has been happening, equities have continued to go higher. I kept saying that markets were moving too fast and too quickly BUT on second thoughts...

...we are seeing the ability of stochastics to so-called unwind, sort of go from overbought to 'underbought'. Look at where it (stochastic on the S +P Daily chart) was at the beginning of May and where it is now. (Clicking on the chart gives you a clearer view.)

That has been my biggest complaint...no consolidation. But in affect, since the beginning of May, when you step back, we do see consolidation...on all the time frames, hourly to daily and even the WEEKLY is trading above it's 20 day ema. The S+P has traded in a tight range from 880 to 930 for the whole month and now you can look at another good indicator...in that same time, the RSI (Relative Strength Indicator) which has gone from overbought (70) to just under 60.

I own S+P puts, so we'll see if there is anything that will oppose this new view. Stay tuned.