Market Read: Strong gap & go action today as equities caught a nice risk on tailwind all day from the falling dollar. The continued relative out-performance of small caps, JNK v. LQD, AAPL and tech relative strength, nice volume and aggressive dip buying support a change in the market's complexion. A lot of market leaders closed above their 5 & 8 EMA's something they've been unable to do for a couple weeks now.
It looks like investors were anticipating the Greece bailout to go through so the larger question is will this and the FOMC announcement be faded? And if it is faded how strong will the selling pressure be? It's all about the dollar so I will be watching to see if this $75 level holds or the lower TL support. If it loses that level and heads for $74 we could see a nice move above 130 and the 20 SMA on SPY. We shall see but things look good so far...
DX_F 15 minute
JNK v. LQD