A new age of Energy

One of the few patterns that I actually pay attention to besides triangles and the T1 pattern is the "crawling pattern".

Most of the time this plays out in bearish fashion as a stock or index crawls or bumps along a rising 50 day moving average. Once the support breaks it's usually followed by an aggressive move down to test the 200 day moving average.

Recently we saw this pattern play out in the dollar index.
As you can see when support broke the dollar moved aggressively lower and may still have further to go as it still didn't move all the way back to the 200 DMA yet. I've also noted that the break down powered the rally in the stock market. As a matter of fact both legs down in the dollar powered strong rallies in stocks.
I'm pretty confident that if the rally is to continue Bernanke is going to have to keep pressure on the dollar.
Now we have this same pattern starting to develop on the S&P although in reverse form. If the market breaks above the 50 it should power a very aggressive move higher.