S&P 500 breaks out higher, hinting the US Dollar will remain under pressure as safe-haven demand for the benchmark currency evaporates over the near term. S&P 500 – The case for a near-term double bottom at 1257.30 was reinforced as prices took out support-turned-resistance at a falling trend line connecting major lows since early May. The bulls must now overcome the 38.2% Fibonacci retracement level at 1292.51, with above exposing 1303.20. The trend line (now at 1280.96) has been recast as near-term support. CRUDE OIL – While we’ve yet to see any bullish follow-through on of aHammer candlestick identified yesterday above Fibonacci support at $92.15, the setup has not been invalidated either. Keeping that in mind, the implications of current positioning are essentially unchanged, with a break above initial resistance at $94.52 exposing $96.89. Alternatively, renewed selling pressure that takes prices through $92.15 initially targets $89.21. US DOLLAR – Downward follow-through has been somewhat lackluster but the break below support at 9595.20 – the 38.2% Fibonacci extension level – keeps positioning broadly bearish over the near term. This leaves the greenback vulnerable to a move lower to the 50% Fib at 9558.31, with a break below that targeting 9521.42.

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