Market Recap: The dollar went on a terror overnight and into most of the US equity session and seemed destined to break the down trend line sending stocks below the 200 SMA. The dollar broke 76.25, slowly backed away to 76 then just as it looked like it was going to close strong it faded pretty hard and ignited a HUGE stock rally into the close which continued into after hours. The dollar's failure to break out probably means its going to have to dip, consolidate and re-attempt another run. This sideways action which could allow equities to hold the 200 SMA and trade in a range (SPY 126.5-129.6).
Tech especially AAPL continue to show strength putting in BIG reversal candles today and both closing above their 5/8 EMA's. Money is certainly rotating into this oversold stock and sector. Watch AAPL for a possible market tell as they say "where AAPL goes the market follows." Whether or not this move is sustainable or merely an oversold bounce we shall see. In the QQQ and also the IWM you can see an up channel starting to form. Is this a base or a bear flag?
Tomorrow we have Durable Good Orders and Q1 GDP Estimate at 8:30 AM EST so we'll see where the markets are before and after this news... Personally I'm going to try to not over-trade Friday and close out a great week!
JNK v. LQD