From a monthly basis, the U.S. Dollar created another large bearish wick along an 8-year resistance line at (1) in the chart above.  This might surprise a few investors as the Dollar is a popular investment choice right now, as 77% of investors are bullish the US$. The combo of the wick at resistance and 77% bulls, increases the US$ remains soft for a while (Soft US$ post here) 

On the flip side, the Yen is down 20% over the past year, driving it down to its Fibonacci 38% retracement level and sentiment is very low at 22% bulls. The US$ and the S&P500 have been correlated over the past two years (not the traditional love/hate relationship), while the S&P 500 has been non-correlated to the Yen.

Should the US$ continue soft and the Yen rally, look for the S&P 500 to follow the action of the US$! A soft dollar could benefit Gold, Silver and put a smile on the Miners faces! (Miners reason to smile)

Premium Members are owners EWV (2x short the Nikkei) for over a week now. EWV is up over 22% in 8 days thru last Friday. See why members are short the Nikkei in this you tube video interview with Phil Pearlman, executive editor of Stock Twits (see interview here).

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past