A lot of us are zeroing in on the strength the dip buyers are showing, but we must also note the strength in the US Dollar and long-term bonds.  When it seemed the dollar was going to be left for dead it put in an amazing rally on friday.  The DXY closed at $83.56 which is well above the important $83 resistance level.  Ideally, most traders would feel a lot better about an equity run if we saw both of them tanking.  The TLT has not given up it’s gains holding onto that critical support at $124 and now in a tight pennant formation on the weekly timeframe.  The volume has decreased as well leaving me to believe there will be resolution shortly.  If it fails and breaks hard we should see  a continued run higher in the markets.  If the pattern triggers to the upside, the odds of another wave of selling become higher.

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