Last week we mentioned that the spring rally had reached completion.The major averages were coming up against major resistance at a time when an oversold rally was losing momentum. Admittedly, our call was a couple of days early but today looks like a key reversal day. If the selling continues into tomorrows close, last week will mark a market top.
Buying of the US dollar has increased putting pressure on stocks and commodities. The chart below illustrates the relationship between the dollar and stocks. Notice that the dollar reached a peak in March around the same time stocks reached a bottom.
Below is a longer term picture. The 2002-2007 “Bull Market” had more to do with a devaluing dollar than economic expansion. 
Always watch the volume! The spring rally, though large in % gains, was moving up on decreasing volume which indicates a lack of buyers. Volume seems to have picked up towards the top.
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