Market Update for Monday, May 30, 2011

The markets were closed today for Memorial Day. The futures, however, have been on the move. The E-mini has been moving higher (it's up 9 points as I write) almost reaching overbought on the 4-hour chart. The Dollar Index on the other hand, has been moving lower, and it has already reached oversold on the 4-hour chart. On the daily charts, none of them have reached any extremes and they could move either way. Since we are coming from oversold in the daily chart for the Dollar Index, I would feel that we could still move to overbought on this time-frame. My gut feeling is tomorrow we will see a temporary high on E-mini (a temporary low on the Dollar Index) and then E-mini will move lower to make a new low. This is my gut feeling, so don't take it as trading advise. We'll see what happens tomorrow and beyond.