By Chris Vermeulen of TheGoldAndOilGuy.com
NEW YORK (
) -- 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:
The dollar is way oversold and looks ready for a multiday bounce. This will put pressure stocks and commodities.
Oil was trading at resistance Wednesday. If the dollar bounces it will add downward pressure to oil.
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.
Stocks are overbought across the board, making things look toppy. We are seeing good earnings from
, 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.
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-- 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.