I mean seriously, have a beer with the trend. Talk with the trend. Don’t try and punch it in the face. The trend is stronger than you are. And it WILL smash your face in if you’re not careful.

While bears were out celebrating a stronger dollar and trying to spit in the trend’s face, the trend came back and hunted them down with a machine gun from a helicopter flying overhead.

If I recall correctly (and I do, because my blog tells me so) two days ago I told you to be careful about calling the recent 3-day rout another bear market.

And today, just like that, the Dow popped right back above its 20-day moving average.

Not only that, but the RSI is heading higher (forming an uptrend even) and the Slow Stochastic is nearly crossing over and heading higher as well.

That’s not all though. If you look at the dollar index, the buck is clearly overbought. And today, it was practically unchanged. I wouldn’t be shocked to see the dollar decline over the next few days.

If you’re bold, you might want to start buying.

If you’re a little more on the safe side, then wait for the dollar index to get back under its 50-day moving average before jumping into the market. At the very least, pay attention to the S&P 500 and make sure it gets above its 20-day moving average.

Oh what the hell. I’ll probably tell you as soon as it happens anyways.

Most of what I saw was ridiculous crap. Stuff not even worth mentioning (expect to say that they sucked)

But then this GEM popped out at me…

Dow Jones Chart

This is a 15-minute chart of the Dow Jones.

Notice that 200-unit resistance that has proved quite resiliant. Well, if the Dow can hold its 8,000 support and break above this 200-unit average, then the Dow is rallying.

I really like the fact that neither the RSI or Slow Stochastic are anywhere near overbought. That means the fuel is there for a move much higher…

Hmm… There’s a great credit-spread one can do : )