Market Squeeze Disrupts 2nd Quarter Entry for Stocks and USD

Directional Price movement is back!.

The behavior of the Dow's recent corrective move can be attributed to a market squeeze on prices and clearing out some over-weighted positions entering the 2nd phase of trading activity in the market. Which also led to the recent decline and now a corresponding decline from the USD is weighing in the market..While stocks have regained its posture on a resumption of its bull run.

This is also on top of the recent comments from the IMF positive reading on the European markets and a contrary outlook for the US economy; which also serves as the main catalyst for the price recovery of the Euro and Cable. Aside from traders and investors reaction by forcing a short-covering position that is current taking place. There really should be a clear adjustment both in rates and prices moving forward towards the 2nd quarter; as the US has to maintain a competitive stand with its trading partners to boost its economy in a more sustainable manner.

The mere sense of having earnings season upbeat initial  of reactions have proven to support the current upswing giving stock prices the leverage of price from a declining US Dollar. The cyclical pattern of price change and quarterly directional movement between the Dow and the USD is now in play. Understanding this behavior and the psychology behind the th stock market prices contrary move is now justified as well.