What Will Bernanke Do?

My friends over at The Technical Take pointed out a very interesting metric to gauge whether liquidity is being pumped into the market by the fed, aka Quantitative Easing. Check out the chart below.

This is a daily chart of the PowerShares DB US Dollar Bull (symbol: UUP).  This is an ETF correlated to the movements in the Dollar Index.  The red and black dots on the chart are key pivot points, which are the best areas of buying (support) and selling (resistance). If the UUP closes below the key pivot at 20.92, then the Dollar is going lower, which means Bernanke, in all likelihood, has taken an extraordinary measure to soothe the markets and boost asset price.


(The above chart and description is courtesy of theTechnicalTake.com) 


Today the UUP closed at 20.98. I'll be watching this one closely. Let's see where it's at by Friday!