US Dollar Index and Precious Metals update, Sunday 9/25/11

Back on 9/20/11, I wrote that recent history suggested that when the US Dollar Index, rallies, the SP500 trends sideways at best, and down at worst. At that time, the US Dollar Index was breaking out of a 6 month range.

Now the range break continue to the upside. I believe this strongly suggests that the SP500 will continue in its sideways range at best, or downtrend at worst.

Looking at the Precious Metals, GLD (gold ETF) suffered its largest weekly loss on a percentage basis in many years. At best, GLD remains in weekly uptrend.

SLV (silver ETF), suffered its second large weekly loss of the year. At best it is clinging on to a 7 month base, but that looks to be in jeapordy, and another downleg into the mid to low 20's might be upon us.

I am not sure how much of a relationship these two metals have with the US Dollar Index though.

Disclosure: No positions in the securities mentioned.

***remember this is an illustration of what i am trading and my thinking...it is not a recommendation for you or anyone else to buy or sell this or any other security...trade at your own risk...my positions my change at any time without notice***