Even with stocks struggling, the bull market in hard assets continues to roar. Oil assaulted the $100 level during intra-day trading, then pulled back below $98 before rallying to close near $99. The precious metals were strong despite options expiration as gold closed over $1,410 and silver closed above $33.50. The US dollar tumbled near the 77 level as an index.
Since Art Cashin alerted KWN listeners to watch what he called “critical 78.50 support” the US dollar has closed 26 of the last 28 sessions below the 78.50 level and now appears ready to break down. If the dollar does continue its descent, the last line of support would be the 71 to 74 area. If the dollar were to take out 71, panic selling could emerge sending the dollar into a waterfall decline.
Full article here: King World News