"" S & P 500 Builds Downward Momentum as US Dollar Breaks Out Higher ""

10 May 2012 01: 11 GMT THE TAKEAWAY: The US Dollar has cleared key resistance defining the down trend since mid-March while the S & P 500 is starting to build to catch up to the downside.

S & P 500 - Prices Fraktur a pair of Hammer candlesticks identified yesterday with a break through support at 1363.50, the 76.4% Fibonacci expansion. The bears now set their sights on the 40 1339-1347 40 area, marked by the 100% Fib expansion as well as the 38.2% tracing of the rally from the December 19 2011 swing low. A push below here exposes the 50% tracking at 1313.00. The 1363.50 level has been recast as near-term resitance.

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CRUDE OIL - Prices continue to grind through support in the 95 78-96 56 area marked by a horizontal barrier in play since early November 2011 as well as the 100% Fibonacci expansion. A break below this exposes 92.51. Near-term resistance lines up at 98.89, the 76.4% expansion.

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GOLD - Selling ongoing after completion of a Triangle chart formation carved out since late March - a setup indicative of bearish continuation - with prices narrowly taking out support at 1591.00 marked by the 50% Fibonacci expansion. The bears now aim to challenge the 61.8 percent level at 1569.73. The 50% Fib has been recast as near-term resistance, with a push above that targeting the 38.2% level at 1661.75. Longer term, the Triangle pattern implies a measured downside objective at 1548.21.

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US DOLLAR - The move higher marked by the formation of a Morning Star candlestick pattern identified last week continuous. Prices broke above resistance at a falling trend line established from mid-March. The bulls see the next layer of resistance at 10047, the April 5 high. The trend line - now at 9963 - has been recast as near-term support.

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