UUP Update

For newer members, I use UUP as a proxy for the dollar as I don't have real time access to the Dollar Index intraday so UUP works out pretty well as a proxy.

 UUP showing accumulation around early may, note the negative divergence went on for a bit here and ended with another false breakout at the blue arrow, thus these false breakouts tend to be pretty good timing indicators as we can see accumulation or distribution underway, but can only really guess at how many shares were accumulated and at what rate they are being distributed. The length of the divergence and the timeframe it appears on can give us a rough guide, or when multiple timeframes align that's another signal, but the false breakout tends to be one of the more accurate. Right now the dollar appears to be under accumulation on a 30 min chart again. Right now it's rather small which would indicate a shorter duration move up, if it continues to accumulate, we can expect a longer duration move up.

 The 15 min 3C chart shows the end of the last accumulation cycle from early May, culminating with a false breakout in the blue box. Again, the 15 min chart now is showing accumulation, I call these "cycles"; the entire market moves in them, whether it's a monthly chart or a 1 min chart, the market is more or less fractal.

The 10 min chart shows more defined accumulation, this is how it works, it starts on the shorter duration charts and spills over to the longer duration charts. The bigger the divergence and the longer the chart timeframe, the more important the move.


UUP or the Dollar has an inverse relationship with most commodities, precious metals and equities.