Day trading course Consolidation after a move up on the New Year rally.
The S&P500 emini futures is in a consolidated range on after a positive week. The S&P and the NASDAQ are lagging below their respective October highs. If the S&P and NASDAQ can set new highs, confirming the Dow's strength. If they don't they may ultimately end up proving that the Dow's buyers weren't committed and the market will drop.
The Dollar index has moved down off the highs. There is a decoupling occuring with the Euro - Dollar index and the S&P500. Normally the Dollar index and the S&P500 emini have an inverse relationship. The Dollar index goes up and the equities market normally moves down. There is also a relationship that exists between the Euro and the Dollar. Normally when the euro goes up the equities market goes up. The opposite was also the norm, when the Euro went down, the equities market went down. This Past week we have experienced a rally in US equities and a fall of the Euro. This means they have decoupled. On point 1 euro goes down, dollar index goes up, S&P500 down On point 2 same On point 3 Euro down, dollar index up, S&P500 no direction. This period of consolidation, (no direction) is showing the decoupling from the effects of the euro devaluing. Instead of following it down, the market has supported the price and buyers have kept it from selling off. You might also note that the major trend between the Euro and the S&P500 also decoupled in the long term from around Dec. 1 as the S& [...] day trading course
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