PowerShares DB US Dollar Index Bullish Fund (UUP) — A technical development that is very important to the market right now is the sharp rally in the U.S. dollar.
On Oct. 9, I noted in another publication that, “High volume could indicate a selling climax since it is falling into a possible support zone established in April to July 2008″
Curiously, the UUP double-bottomed at $22.02 on Nov. 25 and Dec. 1, closing last night at $23.03 after plowing through its 20- and 50-day moving averages on very high volume.
From a technical point of view, it looks like the dollar has bottomed. And with that there will be an enormous impact on other industry groups, especially gold, silver and other metals.
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