The Strong Dollar, Inside Story
We are at the very beginning of a strong dollar rally and what is interesting is that many don’t really want it and cannot figure out how to stop it. Two big groups that are highly affected are the Fed and the gold bulls.
See article in yesterdays NYT: http://www.nytimes.com/2011/05/22/business/economy/22view.html
In the meantime the stock market is flirting with the 1315 A&P support level and flash crash indicators were triggered last week and are still in force. What this means is that traders and investors, regardless of their decision time frames have their indicators squashed into a small area and are forced to abandon positions in a narrow trade zone, thereby chasing each other and causing rapid market changes.