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The chart on the left is the S&P 500 (weekly)…Reflecting that the 23% Fib level held the 500 index in check three different times over a period of months, creating what looks to be a bearish “Head & Shoulders” pattern.
At this time the neckline looks to be breaking, which happened to be a key level in 2008, before the waterfall in prices took place!
At the same time it appears the neckline looks to be breaking on the 500 chart, the Dollar is making another attempt to break a year old resistance line in the chart on the right, which is a “weekly” chart as well. The week is far from over, yet if the Dollar would close where it is right now, it would be the first time close above key falling resistance in over a year.
The neckline breakdown in the 500 index, (which was a key level in 2008) and a Dollar breakout of resistance, does not paint a funny or pretty picture for most risk assets!