The dollar index shows us a short term short-term trading range after breaking new higher-highs above the resistance at the top of the price wedge

800am EST

The dollar index shows us a short term short-term trading
range after breaking new higher-highs above the resistance at the top of the price
wedge.  The fact that the buyers were so
strong to KEEP the price above the price wedge highs tells us that the AB=CD
Pattern resistance at 85.120 and then 86.280 are indeed going to be tested
later this summer.  Our time and price
symmetry on the AB=CD Pattern told us to expect by Labor Day (first week of
September) we will be testing those levels overhead.  The main focus today will NOT be the AB=CD
Pattern it will be the INSIDE DAY trading sideways just above the highs of the price
wedge.

We know one of three things is likely to happen today.  First, the dollar index may trade sideways
inside this range, and that gives us sideways ranges on the markets we
trade.  Second, the dollar index may
tumble and fail back below the PLOD and then head lower into the price wedge below.  If the dollar index drops off these highs
this will provide buying opportunities on the markets we trade.  Third, the dollar index may be rising up to
the PHOD and then we may see this continue to push higher.  If the price rises on the dollar index we
will have selling opportunities on the markets we trade.

The dollar index 21-range chart shows us the short term bull price
channel.  The high-percentage trades on a
bull price channel are to buy the lows as support.  So as the dollar index tests the lows of this
bull price channel, what type of CLUE does that provide us?  Dollar index support will mean resistance on
other markets.  If the dollar index sits
at price channel lows (support) we know that if other markets are sitting at
the highs of a range (resistance) we have a great selling opportunity.  I will get the best trading opportunities
when the dollar index tests the price channel lows.