US DOLLAR INDEX TO WEAKEN

One of the ratios we have been watching is CRUDE/USDINDEX (see blog date September 3) which we advised was going to rise as crude rose and US dollar weakened. Well this ratio continues to give evidence that we should continue to see strong crude and weak USD. Crude is indeed moving up and it looks as if the USD Index could drop fairly sharply...InvesTRAC's short term model is showing a declining trend into the first week of November. And the daily chart shows that the moving averages have coincided with the index which invariably leads to a sharp move...the index is on support and weakness today will take it through opening the way for an extended decline. This tends to confirm a bullish outlook for crude and other commodities.