STRONGER DOLLAR HURTS PRECIOUS METALS -- STOCK INDEXES BACK OFF FROM 50-DAY AVERAGES AND BROKEN SUPPORT

RISING DOLLAR PUSHES PRECIOUS METALS LOWER... With global stocks on the defensive over the last week, some money has flowed into the relative safety of the U.S. dollar.   Chart 1 shows the Invesco Dollar Index (UUP) climbing to the highest level in two months.   As usually happens when the dollar rises, precious metals are falling.   Chart 2 shows the Gold SPDR (GLD) falling to the lowest level in two months.   Chart 3 shows Silver iShares (SLV) falling even harder.  Mining stocks tied to the two metals are also breaking support levels.

STOCK INDEXES MEET RESISTANCE NEAR 50-DAY LINES...Major stock indexes have been trying to regain some lost ground over the past couple of days.  But are meeting some resistance near their 50-day moving averages and some overhead chart resistance formed earlier in the month.  Chart 4 shows the Dow Industrials backing off from their blue line and broken support formed along early September lows near 27400.   Chart 5 shows the S&P 500 meeting resistance near 3320 (red line).  Chart 6 shows the Nasdaq 100 (QQQ) also meeting some selling at its 50-day average (blue arrow) and overhead gap resistance formed last week (red box).   Broken support lines like 50-day averages can become new resistance lines on rally attempts.  The same is true of broken support levels.