Day Hagan Tech Talk June 14, 2016

DAY HAGAN TECH TALK

SUMMARY

Given the influence the U.S. dollar has on the direction of commodities, the U.S. Dollar Index continues to be a main focus for Day Hagan Asset Management.

WRITTEN BY

P. Arthur Huprich, CMT

POSTED

June 14, 2016

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KEY TAKEAWAY

The U.S. Dollar Index failed to rise above a declining trend line. The falling/neutral trending U.S. dollar has aided in putting a bid under a various list of hard commodities (those that are mined—please refer to Tech Talk report, dated 6/7/16), and soft commodities (those that are grown—see below). 

U.S. Dollar Index with declining 200-DMA chart
Coffee-Continuous Contract with rising 50-DMA and 150-DMA chart

SUMMARY

Given the influence the U.S. Dollar has on the direction of commodities (and commodity-related equity markets), the U.S. Dollar Index continues to be a main focus for Day Hagan Asset Management. Consistent with this and given the potential ramifications of the “Brexit” vote on June 23, it is imperative that any type of aggressive short-term non-equity correlated positions be coupled with a stop-loss strategy.

KEY LEVELS

S&P 500 (SPX) – Tactical support: 2040 (closing level) and 2026 (intraday). Resistance: 2121, 2133 to 2135.

Have a great week.

Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management

— Written 06.14.2016

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