Click to Enlarge
The dollar index held above the 38.2% support level last week before closing higher Friday. The weekly Herrick Payoff Index (HPI), which uses volume and open interest to calculate money flow, is positive. The HPI has been much stronger than prices since December 2009 when it formed a positive divergence at the lows. The HPI did confirm the recent highs, consistent with a stronger dollar rally. The 50% resistance is at 82 with further resistance at 84. For more on the HPI, sign up to receive this week’s Trading Lessons e-letter.
