Commodities Heading South.....

The early June to late June activity has put in an "intermediate top" in the equity market.

As well, commodities are heading south. Silver is in a bearish wedge built over the last year. Tons of money has been pumped into the commodity markets over the past 6 months. That will be coming back out in the normal heard mentality.

Oil has also topped out and has started to roll over as well.

Watch the dollar closely. Everyone and their cat seems to think the dollar is heading south. The crowd is usually wrong when they are all on the same side of the ship. The dollar has a long term "complex (multiple) head and shoulders" that has formed over the last year.....but it also has a shorter term (4 months) bearish wedge. Keep in mind that the head and shoulders is NOT a particularly "accurate". So just because there IS a "head and shoulders" present........doesn't mean that the dollar will implode south. So watch BOTH the bullish wedge formation AND the head and shoulders......so see how this resolves itself.

One final word......remember that this week has been "fueled" by both month end "window dressing"........as well as the first two trading days of the month (July). The first two trading days of the month have more significant inflows coming in for 401(k)'s and pension funds.