USD @ MS1

The US Dollar Index looks like a short term bottom on the Monthly S1 Pivot. Next Resistance is at 78.25 - 78.50. Support is at 77.25.

Dec Gold @ YR2

December Gold is testing the Yearly R2 Pivot. I also noticed on Freestockcharts.com that Silver(XSLV) kissed the YR2 Pivot @ $25.

Monthly R1 pivot resistance

The Dow and S&P are running into resistance at the monthly R1 Pivot(blue circle). Look for a pullback to the 20 dma or sideways consolidation this week.

Opex week

We have October OPtions EXpiration(Opex) this week. and earnings season starts. It should be a whippy week. The Dow Jones is pinning the 11,000 strike. The S&P should pullback and pin the 1150 strike this week. I think we'll trade between 1150 and 1175 possibly 1200 this week.

update:

the Monthly R1 Pivot on the INDU =11116 will be resistance this week

Consolidation

A correction can be either in Price or in Time. Last week the markets took a break and went sideways. The 10875 level on the Dow Jones has been strong resistance, as per the chart above showed it would be. Is the market running out of steam or just taking a break to let the 20dma(yellow line @10650) catch up? Or does the market drop down to the 20dma and open gap at 10666? Until we get a strong reversal/sell signal, keep buying the opening dips. This week, look for resistance at 10942 and then at 11056. Support this week comes in at 10650 and then at 10500.