Unwinding

Today’s market action is like a huge margin call. With the US dollar rising as the result of the Greece problems and the uncertainties from other Euro zone countries, the dollar trades were finally forced to unwind, and that triggered selling from margin calls across the board, equities and commodities.

Although today’s drop raised talk about the impending correction that many traders were waiting for, but the bottom line is this market rally has not topped out. Yesterday, the DJT made another new closing high to reiterate a newer high for the DJIA is yet to come. Therefore, until the market has signaled it has topped out, I will be monitor the major market indices for possible support near their 50 days SMA or the 38% Fib retracement level. One thing for certain, the selection is narrowing and this makes it much more critical to be patient and only trade those high percentage setups.

Here are the updated charts:

SP500:



DJIA:



DJT:



Nasdaq 100:



Russell 2000: