OnIslandTrader's Blog : Today's Selloff Less Bad Than You Think

The stock market sold off fairly hard today, but I wanted to bring attention to the resiliency of the stock market despite the sharp rally in the dollar. Despite the dollar closing at a multi-month high, stocks are just inches away from cyclical highs themselves.

When contrasted against the recent price action in gold, stocks look even stronger.

I'm not sure how much further the dollar rally has to go, but the selloff in gold is not finished yet. A gap lower followed up by further selling and a close at the lows of the day (on decent volume to boot) typically implies that the weak hands have yet to be washed out. Gold (GLD) will likely kiss old resistance levels at the 100 mark before we head higher once again.

--
To see the charts that go with this post please visit
http://blog.onislandassetmgmt.com/?action=view&url=todays-selloff-less-bad-than-you-think