The bi-polar market

Another all over the place day today.  Looking on the hourly, the go long singal was the hammer that formed in the first hour of trading.  Plus it bounced right off the orange trendline.  Then of course we have the 3:00 clock b.s stuff.  The bears defended the 860 very well today.   The bulls failed to hold the 20EMA but held the 50EMA.  The bulls were also able to defend the daily channel and the weekly 20EMA.  Seen below

On the daily, look at the channel SPX is in.  There is no reason to fight this channel.  Although the channel does look to be breaking down,  the market has not been able to get back to the top of it, and keeps touching the bottom of the channel. 

The market still is playing out the Light Blue Scenario.  But if we break the channel the Magenta scenario could play out.

The dollar was down again today it failed to get above resistance, I said 86.10 this morning should be resistance, looks like 86.20 was the resistance.   86.20 is now key resistance for the DX.  Plus we are back below the trendline.

RTH- I hate retail.  Walking around NYC this weekend I observed, everyone was shopping like there was no economic problem at all.  Apprentally UGGS are back in style because that place was packed.  Everything is on sale, so with the little dollars people have left they are buying worthless crap.  Ah the American way!
Here is a chart of RTH.  It is showing bearish divergence on the MACD and RSI.  With 80 being resistance as well.  Notice the dry up of volume!  But a break out of 80 would send this stock to at least 90.

XLU- Is a defensive sector so when it is up today it shows some sector rotation to the defensive stocks.  Watch XLU for a break out.  It could be a signal the market might turn.

LET'S GO RANGERS BIG GAME 7 TONIGHT!!!!!!!!!!!!!!!