With Mideast turmoil chasing oil higher and stocks lower, it's a good time to check the charts and see what price levels seem to be key "lines in the sand." Some indicators have been warning for months that the steep rally was preparing to reverse.
The dollar-stocks see-saw -- in which the two move in opposite directions -- seems to be holding up. And over the longer term, there's good reason for the dollar to stay on its recent upward trend, which would be bad news for stock prices.
Just call this week%u2019s labor report a wash: Initial jobless claims unexpectedly jumped 13,000 to 462,000, but continuing claims plunged another 112,000, and the trend in state-level claims continues to provide evidence that the period of layoffs is subsiding.
The market has been up and down for the past few months, lacking a clear sense of direction. Is this the new normal, or just a pause in an uptrend? Technically, a strong case can be made that it is the latter -- a typical retrace in a longer bullish trend.