Stocks, Gold Could Unwind Gains

It's been a strong week for stocks, but the market could get hit by selling pressure.
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By Chris Vermeulen of TheGoldAndOilGuy.com

NEW YORK (

TheStreet

) -- It's been another strong week for stocks, but market participants are wondering whether stocks and commodities could get hit with selling pressure.

I have put together a short video examining the markets (see below), but here are the key points:

Dollar

The dollar is way oversold and looks ready for a multiday bounce. This will put pressure stocks and commodities.

Crude Oil

Oil was trading at resistance Wednesday. If the dollar bounces it will add downward pressure to oil.

Gold

It's a tough call on gold because it could go either way here. It could be seen as a safe haven and rise if stocks fall in the coming days, or it could come under pressure if the dollar moves up.

S&P 500

Stocks are overbought across the board, making things look toppy. We are seeing good earnings from

Alcoa

(AA) - Get Report

,

CSX

(CSX) - Get Report

and

Intel

(INTC) - Get Report

, but the stocks sold off on the good news, which is a bearish sign for the equities market overall.

The S&P 500 gapped up on Tuesday and has been trading sideways in a tight channel, building power for the next breakout. Tension is building, and we should see a breakout from this channel today. The odds are pointing to lower prices, but only time will tell.

Here is my short technical video explaining all of this

.

Get my trading analysis and alerts at

TheGoldAndOilGuy.com

.

-- Written by Chris Vermeulen in Collingwood, Ontario, Canada

Chris Vermeulen is founder of the popular trading sites www.thegoldandoilguy.com and www.ActiveTradingPartners.com. There he shares his highly successful, low-risk trading method. Since 2001, Chris has been a leader in teaching others to skillfully trade in gold, silver, oil and stocks in both bull and bear markets.