Stocks plummeted on Friday after unemployment rose to near 10% levels once again. This is likely going to plunge consumer confidence and pressure stocks on any rally attempt. Bonds spiked on the news and rightfully so, since the prospects for corporate growth are no longer gaining ground and a flight to quality is in order. The dollar set fresh highs as its inverse relationship to stocks along with a continued âwalk-outâ on the euro currency has the dollar screaming higher. Critical long term pennant resistance is a major hurdle for this market to overcome, but in my opinion the dollar will bust through that price resistance and test 91 in short order. This upward action in the dollar will push the euro to about 115 at which point it will likely be a buy. The Japanese yen is going to be a safe haven for those who want out of the euro currency and either want no part of the U.S. dollar or who just seek diversification. A push higher in bond prices will also be a catalyst for more yen buying. The Australian dollar remains a strong short. The Canadian dollar has shown support following a hike in interest rates, which for all intensive purposes was more for show than practicality. In fact if they continue to hike rates then they could force a major economic collapse there. I recommend selling into this support. By James Mound