Today's Selloff Less Bad Than You Think
The stock market sold off fairly hard today, but I wanted to bring attention to the resiliency of the stock market despite the sharp rally in the dollar. Despite the dollar closing at a multi-month high, stocks are just inches away from cyclical highs themselves.
When contrasted against the recent price action in gold, stocks look even stronger. Have a look at the beating gold has taken over the past two weeks:
I'm not sure how much further the dollar rally has to go, but the selloff in gold is not finished yet. A gap lower followed up by further selling and a close at the lows of the day (on decent volume to boot) typically implies that the weak hands have yet to be washed out. Gold will likely kiss old resistance levels at the 100 mark before we head higher once again.