In reent posts, I've been talking about the divergence between price in UUP (proxy for the Dollar Index) and 3C, which have shown strength. As is almost always the case, UUP broke below an obvious support level at May/June and as is usually the case with these types of breaks (especially with positive 3C), the breakdown was accumulated only to see UUP shoot right back through resistance the next day.
Here are the updated UUP 3C charts for today, there are some minor changes.
1 min 3C showing accumulation of the break below support, also note that we have a negative divergence on this morning's gap up.
The 15 min chart shows a bit more history and the importance of the positive divergence in UUP, however it too is already showing a negative divergence on the gap up this morning, to be found on a 15 min chart so quickly hints that there's been some decent distribution in to the gap up.
The 30 min chart shows more history of the divergence and also a slight negative today.
And the 60 min remans very strong. I suspect UUP will pullback which will have effects on correlated assets, but considering the longer view, I think there's something bigger brewing in the $USD/Dollar index that will play out soon.
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