I'm surprised how many traders don't look at currencies being several are key to moving the market, there's a lot of information to be found in analysis of currencies.
The key currency is the $USD or for FX pairs, the EUR/USD. When the $USD is strong, typically risk assets like stocks, commodities, oil, precious metals, etc go down, when the $USD is weak, these same risk assets tend to rise.
So keeping in mind the near term analysis I posted several posts ago (about a possible gap up tomorrow as a bearish reversal confirmation signal), it seems the $USD's underlying action is very close to the analysis from that post.
Lets look at the charts...
UUP (an ETF proxy for the $USD) 1 min shows some recent afternoon deterioration suggesting near term the dollar moves down, this would be in line with the analysis suggesting near term market price appreciation via a gap up possibly tomorrow.
The 2 min chart which has been looking pretty good in white also shows some recent negative activity on a short term intraday chart, it's not a big deal, but it tends to fall in line with the analysis of a gap up in the a.m. that turns in to a downside reversal confirmation candlestick.
The 3 min chart shows the same. This would also suggest USO see some very short, near term upside.
However when we get to the more important timeframes starting at 5 mins, we have positive divergences, this would suggest after a small, brief bout of strength in the market, the dollar would push higher, pushing the market lower.
The more important 15 min chart agrees and shows an impressive positive divergence, this would be negative for the market.
Finally even the 60 min chart shows recent leading positive action, again, this falls in line with the assumptions about the short term trend starting with a reversal.
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