This morning, the U.S. Dollar Index futures (DX Z1) are soaring higher by 0.54 cents to $77.39 per contract. As we should all know by now, when the dollar goes up the major stock market indexes will go down. The markets deflate very quickly when the U.S. Dollar Index trades higher. The U.S. Dollar Index futures (DX Z1) will have some short term intra-day resistance around the $77.80 level.
The Falling U.S. Dollar Index Comes To The Rescue Again
Once again, the decline in the U.S. Dollar Index futures (DX Z1) has saved the major stock indexes from another sharp decline. Traders can easily see that the U.S. Dollar Index futures topped out at 10:00 am EST. At the same time, the major stock market indexes found a low and have rebounded higher.
The markets continue to see uncertainty and it is getting worse. The Federal Reserve just released their FOMC Policy Statement and there was no direct mention of QE3. In addition, there is now talk Greece will not get their next bailout payment until after the referendum vote. If they do not get the next payment shortly, a hard default is likely.
While the cheerleaders on the cable financial news networks are shaking their pom-poms and jumping out of their seats about the recent stock market rally oil prices have surged higher over the past month. The price of WTI crude futures (CL) has soared higher by nearly $20.00 since the October 4, 2011 low when oil was trading at $74.95 a barrel. Can the U.S.
The biggest of the biggest, Exxon Mobil (NYSE: XOM), announced third quarter earnings this morning. It was a decent report, as the world's largest oil & gas company reported quarterly revenues that were over $125 billion. Yet, just because it is the biggest, does not make it the best.
As we all know, the major stock indexes have surged higher since October 4, 2011. On that date the S&P 500 Index e-mini futures (ES Z1) undercut the August 9, 2011 low before staging a massive rally in the final 45 minutes of the trading day. That chart pattern will usually create a low for several days to several weeks before showing signs of weakness again.
Stock Market Videos: Markets Hit Master Level, Profit Now
Normally, after a large rally or decline the next trading session is much more subdued or quiet. Yesterday, the stock markets surged sharply higher with the Dow Jones Industrial Average gaining over 300.00 points by the end of the day. The rally was broad based as most every leading stock sector participated.
This morning, all of the leading energy stocks are surging sharply higher. Exxon Mobil Corp (NYSE:XOM) is the world's leading integrated energy stock in the market and this energy giant is trading higher by $1.50 to $75.06 a share. When XOM's stock rallies higher most of the other leading energy stocks will follow. This stock will have intra-day resistance around the $75.25, and $76.00 levels.
Stocks ran into a master resistance today. The S&P 500 hit 1159. This is a three bar surge on the daily chart and a major resistance point. The markets are now eying the Non Farm Payrolls report tomorrow at 8:30am ET. After a 7.5% move up in the last few days, smart traders and investors are taking profits to protect themselves. The S&P 500 is trading at 1151.