<p>Today was one of the day when the S&P 500 did not reflect the opposite trend of US Dollar - US Dollar Index went up, yet, the S&P 500 index remained flat. There could be two explanation of such behavior: a) the patter is broken and S&P 500 and US Dollar trend will not be correlated, or b) the S&P 500 index will catch it later by stronger movement down.<br /><br />October 21st high is broken it could mean that bulls are taking over. This high was broken on the S&P 500, DJI and Nasdaq 100. However, the break out was very weak and the indexes retraced back down. I would not like to be in a long on such weak trend. There are too many negative signals on the leading indicators for me to be Bullish. It could be premature to play short, yet I would not bet on any bullish signals right now. I would rather stay in cash.<br /><br />Worth checking:<br /> - DJU (Dow Jones Utilities) index is already in correction<br /> - DJT Bullish volume surge on October 23, 2010 extremely strong;<br /> - Starting from October 14, 2010, the US Dollar shows the possibility of recovery;<br /> - Yes, the S&P 500, Nasdaq and DJI are trading close to their highs, however, the trading is very weak;<br /> - Despite the fact that S&P 500, Nasdaq 100 and DJI are close to the top, advance decline volume and issues ratios for these indexes are trending down.<br /> - Huge volume surges in period from October 13 until October 20, 2010 have to be played out somehow on the supply/demand balance...<br><br>P.S. Advance decline and volume indicators for US indexes could be found on <a href="http://www.MarketVolume.com">www.MarketVolume.com</a> </p>